Factsheet - October2014 - PrincipalIndia · between Equity & Debt on the basis of the Price...

PRODUCT SUITABILITY

Scheme Names This product is suitable for investors who are seeking~ Product Label Pg. No.

Principal Large Cap Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 8(An Open-ended Equity Scheme) including equity derivatives of large capitalization Companies

Principal Emerging Bluechip Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 9(An Open-ended Equity Scheme) including equity derivatives of mid & small capitalization Companies.

Principal Growth Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 10(An Open-ended Equity Scheme) including equity derivatives of companies across market capitalization.

Principal Dividend Yield Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 11(An Open-ended Equity Scheme) including equity derivatives of high dividend yield Companies.

Principal Index Fund - Nifty • Long term Capital Growth. • Investment in equity securities High Risk (Brown) 12(An Open-ended Index Scheme) including equity derivatives of CNX Nifty (NSE) Companies.

Principal Index Fund - Midcap • Long term Capital Growth. • Investment in equity securities High Risk (Brown) 13(An Open-ended Index Scheme) including equity derivatives of CNX Midcap Index.

Principal SMART Equity Fund • Long term Capital Growth. • Investment in equity & equity related securities High Risk (Brown) 14(An Open-ended Equity Scheme) including equity derivatives of large capitalization Companies as well as

Debt/Money Market securities through a systematic allocation of Fundsbetween Equity & Debt on the basis of the Price Earnings Ratio of CNX Nifty.

Principal Personal Tax Saver Fund • Long term Capital Growth with a three year lock-in. High Risk (Brown) 15(An Open-ended Equity Linked Savings Scheme) • Investment in equity & equity related securities including equity derivatives of

large capitalization Companies.

Principal Tax Savings Fund • Long term Capital Growth with a three year lock-in. High Risk (Brown) 16(An Open-ended Equity Linked Savings Scheme) • Investment in equity & equity related securities including equity derivatives of

companies across market capitalization.

Principal Balanced Fund • Income and Long term Capital Growth. • Investment in equity & equity Medium Risk (Yellow) 17(An Open-ended Balanced Scheme) related securities, debt/money market securities as well as derivatives.

Principal Debt Savings Fund - MIP • Income and Capital Growth over a medium term investment horizon. Medium Risk (Yellow) 18An Open-ended Income Fund • Investment primarily in debt/money market securities with exposure in(Monthly Income is not assured and is subject equity & equity related instruments including equity derivatives.to the availability of distributable surplus)

Principal Government Securities Fund • Income over a long term investment horizon. Low Risk (Blue) 19(An Open-ended dedicated Gilt Scheme • Investment in Government Securities.investing in Government Securities)

Principal Income Fund - Long Term Plan • Income over a long term investment horizon. Low Risk (Blue) 20(An Open-ended Income Scheme) • Investment in Debt & Money Market Instruments.

Principal Debt Opportunities Fund - • Income over a long term investment horizon. Low Risk (Blue) 21Corporate Bond Plan • Investment in Debt & Money Market Instruments of Private &(An Open-ended Debt Scheme) Public Sector Companies.

Principal Income Fund - Short Term Plan • Income over a medium term investment horizon. Low Risk (Blue) 22(An Open-ended Income Scheme) • Investment in Debt & Money Market Instruments.

Principal Bank CD Fund • Income over a medium term investment horizon. Low Risk (Blue) 23(An Open-ended Debt Scheme) • Investment in Bank CDs, Debt & Money Market Instruments.

Principal Debt Opportunities Fund - • Income over a short term investment horizon. Low Risk (Blue) 24Conservative Plan (An Open-ended Debt Scheme) • Investment in Debt & Money Market Instruments.

Principal Cash Management Fund • Income over a short term investment horizon. • Investment in Debt & Low Risk (Blue) 25(An Open-ended Liquid Scheme) Money Market Instruments, with maturity not exceeding 91 days.

Principal Global Opportunities Fund • Long term Capital Growth. High Risk (Brown) 26(An Open-ended Fund of Funds Scheme) • Investment in overseas mutual fund schemes.

Principal Retail Money Manager Fund • Income over a short term investment horizon. Low Risk (Blue) 26(An Open-ended Debt Scheme) • Investment in Debt & Money Market Instruments.

Principal Debt Savings Fund - Retail Plan • Income over a long term investment horizon. Low Risk (Blue) 27(An Open-ended Income Scheme) • Investment in Debt & Money Market Instruments.

~ Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Risk may be represented as: Investors understand that their principal will be at Low Risk (Blue);

Investors understand that their principal will be at Medium Risk (Yellow);

Investors understand that their principal will be at High Risk (Brown)

INVEST KNOWHOW October 2014

3

Debt Markets

Fund Manager Commentary

October 2014

Fixed Income Update for October 2014

Key Market Highlights:

• During the month, yields fell across most asset classes sharply. Gilt yields ended

the month 20 to 30 bps lower. Money market yields and corporate bond yields

also fell by 25-30 bps across maturities. Sharp fall in CPI and WPI, fall in crude oil

prices, large bond purchases by FIIs and fall in global bond yields were the

primary reasons.

• Brent Crude oil prices continued their downward trend ending the month at

USD 85 per barrel as compared to USD 94 per barrel in the previous month.

The government announced deregulation of diesel prices and further cut in diesel

prices taking advantage of the fall in crude oil prices.

• INR closed stronger during the month at 61.37 as compared to 61.75 the previous

month. For the month of October, FIIs continue to remain buyers in the debt market

with net debt purchases totaling ` 17,400 crore approx.

• The benchmark ten year g-sec closed the month at 8.28%, 23 bps lower than

previous month.

• The ten year AAA Corporate bond benchmark closed at 8.90%, 30 bps lower than

previous month. The five year AAA corporate bond benchmark closed at 8.90%,

34 bps lower than previous month.

• 1 year CD rates fell by 27 bps to close at 8.78%. 1 year T bill rate also fell by 27 bps

to close at 8.35%.

• Sept WPI data release came lower at 2.38% as compared to 3.74% as in

previous month. CPI for September came lower at 6.46% compared to 7.73%

in previous month.

• August industrial production (IIP) growth came in at 0.4% yoy reflecting subdued

industrial activity. The growth in the output of eight core sector industries came

in at 1.9% in September from 5.8% in August.

• Fiscal data released by the government for the period April-September 2014 was

` 4.39 lakh crore ($71.5 billion), or about 82.6% of the full-year target.

• Liquidity deficit was lower during the month at ̀ 51,000 crore average as compared

to ` 46,000 crore average for the previous month combined for daily LAF, term

LAF and MSF. Overnight rates remained stable around 8% during the month.

• During the month, RBI announced an OMO (Open Market Operations) sale of

G-secs for ` 10,000 crore to suck out liquidity from the banking system.

However RBI accepted bids worth ` 6582 crore only.

Outlook:

• We expect inflation data (WPI and CPI) to be lower as compared to previous data

releases. This could support bond prices.

• We expect the new ten yr benchmark G sec to trade in a range of 8.15% to 8.35%

during the month. Further OMO sales by RBI can lead to bouts of profit taking and

higher yields given the current sustained rally. The five year AAA PSU corporate

bond benchmark is expected to trade in a range of 8.70 to 9.00%.

• Banking system liquidity deficit is expected to go up in range of ` 70,000 crore

to 100,000 crore for the month.

• Short term money market yields upto 3 month maturity are expected to remain

range bound. We expect the 3 month CD rate to remain in range of 8.40-8.80%.


4

Fund Manager Commentary

Equity Markets

Review of Equity Market for the Month of October 2014

October was a month of two halves for the Indian markets, like other equity markets

(both developed and emerging). The first half of the month was weak, with markets

down (nearly 3%) followed by a smart recovery in the second half (markets were up

more than 7% in the second half). The markets were initially concerned about the

impending end of the QE by the US Fed and potential hawkishness in the statement.

Also, weak data from Europe and China, and weak commodity prices led to talk of

deflation which impacted the market. However, statement from a Fed governor calling

for a delay to end of taper as inflation expectations remained muted was a positive

trigger for the markets. Also, the announcement from the Japanese central bank about

the increased purchase of assets towards the end of the month positively surprised the

markets. As far as India is concerned, the second half of the month opened with the

results of the election of the state assemblies of Maharashtra and Haryana in which the

BJP emerged as the largest party in both the states. Following the results, the union

government announced a series of reforms. Most importantly, taking advantage of the

weak oil prices, the government decontrolled prices of diesel. The government finally

took a decision on the price of natural gas, and announced that there would be an

auction of the surrendered coal blocks. There were also reforms on factory inspection

and easing of limits on FDI in construction etc.

Flows into equity markets remained strong, especially from mutual funds. Domestic

mutual funds were net buyers with USD 894 million while insurance companies remained

small sellers. Mutual funds have received inflows of over ` 39,000 crores in the period

April - October 2014. FIIS were purchasers of about USD 135 million (last month, about

USD 900 million). In terms of sectoral performance, financials and capital goods were

stand out sectors during the month. Financials were driven by lower long bond yields as

weak inflation numbers led to a rally there.

As mentioned above, inflation numbers for September came in lower. WPI for September

came in at 2.4% (August was 3.7%) while the CPI came in at 6.5% (previous month,

7.8%), sharply below consensus. The ‘core’ inflation number shave also moderated.

Inflation has been helped by a favourable base effect, and weaker food and commodity

prices. In negative macroeconomic news, the fiscal deficit of the union government

stood at 83% of FY15 estimates for the first half of the year. This is primarily due to

weaker tax collections as economic growth remains weak. The Rupee remained virtually

flat during the month, appreciating 0.6% vs the USD.

On the whole, the second quarter results that have been declared so far have been in

line with the estimates. The ones which have had a positive surprise are Telecom and

Healthcare while consumer staples and financials have broadly been in line with the

estimates. We will get a clearer picture as more companies declare results.

The markets expect continuation of the reforms process with GST legislation likely to be

introduced in the parliament in the winter session. However, geopolitical events will

also be watched. Another factor that might weigh on the markets could be PSU

disinvestment as the government now has just over four months remaining in the fiscal

year and tax revenues are running low which is impacting the fiscal deficit.

During the month we bought or added to our positions in Axis Bank, Bajaj Auto,

Bank of Baroda, Bank of India, State Bank of India, HDFC Bank, National Aluminium,

Oriental Bank of Commerce, V S T Tillers and Tractors, AIA Engineering, Atul Products,

CESC, Cox & Kings, Cyient, Indiabulls Housing Finance, Karur Vysya Bank, NCC Ltd.,

Oil India, Orient Cement, Ramkrishna Forgings, Shriram Transport Finance, Tata Chemicals,

Power Finance Corporation, Yes Bank, ICICI Bank and Infosys among other stocks.

We sold or reduced our positions in Persistent Systems, Bajaj Holding & Investments,

Cummins India, Tata Consultancy Services, Tata Motors, Hinduja Ventures, National

Buildings Construction, Supreme Industries, Amara Raja Batteries, Hindustan Construction

Company, Indraprastha Gas, Shree Cement, Symphony, Motherson Sumi Systems,

ING Vysya Bank, Ashok Leyland, Bharat Petroleum Corporation, Gujarat State Petronet,

Maruti Suzuki India, Hero Motocorp and IRB Infrastructure Developers among

other stocks.

October 2014

PERFORMANCE AS ON OCTOBER 31, 2014*

Index 1 Month 3 Months 6 Months 1 Year(%) (%) (%) (%)

Broad Markets

CNX Nifty Index 8322 4.49 7.78 24.28 32.12

S&P BSE Sensex 27866 4.64 7.61 24.30 31.66

S&P BSE 100 8384 4.59 7.49 24.85 33.70

S&P BSE 200 3392 4.32 7.87 26.20 36.21

S&P BSE 500 10595 4.14 7.76 27.00 38.38

S&P BSE Mid Cap 9835 3.19 7.04 34.29 61.03

S&P BSE Small Cap 10931 2.34 9.43 45.94 85.39

Sectoral Performance

S&P BSE Auto 18579 4.69 19.94 38.94 53.87

S&P BSE Bankex 19505 10.73 11.55 32.63 49.04

S&P BSE CG 15925 11.61 8.69 31.41 74.00

S&P BSE CD 9875 0.25 15.41 51.52 56.59

S&P BSE FMCG 7497 -1.75 4.57 10.85 10.02

S&P BSE Metal 11850 3.86 -9.29 18.72 29.14

S&P BSE Oil & Gas 11160 4.02 3.82 16.88 24.89

S&P BSE PSU 8343 7.21 4.14 28.50 43.75

S&P BSE Teck 5938 0.32 8.19 21.67 23.32

S&P BSE HC 14354 0.01 16.31 33.43 49.38

*Performance for less than one year period are absolute returns and more than one year arecompounded annualized returns.

Source - MFI Explorer


5

Funds at a Glance

# In respect of purchase/switch-in of units in any of the Schemes (other than Liquid Schemes) for an amount equal to or more than ` 2 Lakhs, the closing NAV (Net Asset Value) of the day shall be applicable subject to realisationof the funds upto 3.00 p.m. and receipt of application (duly time stamped). ^ Lock-in of 3 years.

Particulars Principal Principal Emerging Principal Principal Principal PrincipalLarge Cap Fund Bluechip Fund Growth Fund Dividend Yield Fund Index Fund - Nifty Index Fund - Midcap

Nature of the An Open-ended An Open-ended An Open-ended An Open-ended An Open-ended An Open-endedScheme Equity Scheme Equity Scheme Equity Scheme Equity Scheme Index Scheme Index Scheme

Allotment Date- Regular Plan November 11, 2005 November 12, 2008 October 25, 2000 October 15, 2004 July 27, 1999 May 12, 2014

- Direct Plan January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 May 12, 2014

Investment Plans / Regular Plan & Direct Plan. Both the Plans offer Growth & Dividend Option.Options Dividend Option under both the Plans offers facility of Payout, Reinvestment and Sweep.

Fund Manager & Anupam Tiwari Dhimant Shah P.V.K. Mohan Dhimant Shah Rupali Pandit Rupali PanditManaging the July 2011 June 2011 September 2010 December 2011 October 2012 May 2014Current Fund from

Total Investment 9 years 22 years 21 years 22 years 18 years 18 yearsExperience

Benchmark S&P BSE 100 Index CNX Midcap Index S&P BSE 200 Index CNX Dividend CNX Nifty Index CNX Midcap IndexOpportunities Index

Minimum New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000Application Amount Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000

Cut Off Time# 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm

Exit Load If redeemed on or before 1 Year from the 1% - If redeemed within If redeemed on or before 1% - if redeemed on or before 90 days(including SIP /STP / date of allotment - 1% 365 days from the 1 Year from the from the date of allotment;SWP, if available) date of allotment. date of allotment - 1% Nil - if redeemed after 90 days from the

Nil - If redeemed after date of allotment.365 days from thedate of allotment.

SIP / SWP / STP Available

Minimum No. & 6 installments of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each.Amt. of SIP/SWP/STP(if available)

EQUITY SCHEMES

Particulars Principal Principal Personal Principal Principal Principal DebtSMART Equity Fund Tax Saver Fund Tax Savings Fund Balanced Fund Savings Fund -

Monthly Income Plan

Nature of the An Open-ended An Open-ended Equity An Open-ended Equity An Open-ended An Open-ended Income FundScheme Equity Scheme Linked Savings Scheme Linked Savings Scheme Balanced Scheme (Monthly Income is not assured

and is subject to the availabilityof distributable surplus)

Allotment Date

- Regular Plan December 16, 2010 March 31, 1996 March 31, 1996 January 14, 2000 May 23, 2002

- Direct Plan January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013 January 2, 2013

Investment Plans / Regular Plan & Direct Plan. Regular Plan & Direct Plan. Regular Plan & Direct Plan. Regular Plan and Direct Plan. Regular Plan & Direct Plan.Options Both the Plans offer Both the Plan do not have Both the Plan do not have Both the Plans offer Both the Plans offer

Growth & Dividend Option. any options at present. any options at present. Growth & Dividend Option. Dividend & Growth Option.Dividend Option under both Dividend Option under both Dividend Frequencies -the Plans offers facility of the Plan offers facility of Payout, Monthly / QuarterlyPayout, Reinvestment and Sweep. Reinvestment and Sweep.

Fund Manager & Anupam Tiwari Anupam Tiwari P.V.K. Mohan P.V.K. Mohan Pankaj JainManaging the July 2011 July 2011 September 2010 May 2010 January 2012Current Fund from

Total Investment 9 years 9 years 21 years 21 years 12 yearsExperience

Benchmark Crisil Balanced Fund Index S&P BSE 100 Index S&P BSE 200 Index Crisil Balanced Fund Index Crisil MIP Blended Index

Minimum New Investor: ` 5,000 New Investor: ` 500 New Investor: ` 500 New Investor: ` 5,000 New Investor: ` 5,000Application Amount Existing Investor: ` 1,000 Existing Investor: ` 500 Existing Investor: ` 500 Existing Investor: ` 1,000 Existing Investor: ` 1,000

Cut Off Time# 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm

Exit Load 1% if redeemed Nil Nil If redeemed on or before 1 Year from the(including SIP /STP / within 1 year from the date of allotment - 1%.SWP, if available) date of allotment.

SIP Available

SWP / STP Available Available after lock-in period Available Available

Minimum No. & 6 installment of 6 installments of ` 500/- each. 6 installment of SIP - ` 2,000/- each, STP - ` 1,000/- eachAmt. of SIP/SWP/STP SIP - ` 2,000/- each, & SWP - ` 500/- each.(if available) STP - ` 1,000/- each &

SWP - ` 500/- each.

EQUITY SCHEME EQUITY LINKED SAVINGS SCHEME (ELSS)^ TARGET RISK FUNDS


6

Funds at a Glance (Contd.)

Particulars Principal Government Principal Income Fund - Principal Debt Opportunities Principal Income Fund - PrincipalSecurities Fund Long Term Plan Fund - Corporate Bond Plan Short Term Plan Bank CD Fund

Nature of the An Open-ended dedicated An Open-ended An Open-ended An Open-ended An Open-endedScheme Gilt Scheme investing in Income Scheme Debt Scheme Income Scheme Debt Scheme

Government Securities

Allotment Date

- Regular Plan August 23, 2001 May 09, 2003 September 14, 2004 May 09, 2003 November 6, 2007


Investment Plans / Regular Plan and Direct Plan.Options Both the Plans offer Dividend & Growth Option.

Dividend Frequencies Quarterly / Annual Quarterly / Annual Monthly Monthly Monthly

Fund Manager & Bekxy Kuriakose Bekxy Kuriakose Bekxy Kuriakose Gurvinder Singh Wasan Gurvinder Singh WasanManaging the October 2012 Janaury 2013 Janaury 2013 April 2011 April 2011Current Fund from


Benchmark I-Sec Composite Index Crisil Composite Bond Crisil Composite Bond CRISIL Short-Term Bond Crisil Liquid Fund IndexFund Index Fund Index Fund Index

Minimum New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000Application Amount Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000

Cut Off Time

Subscription# 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm

Redemption 3.00 pm 3.00 pm 3.00 pm 3.00 pm 3.00 pm

Exit Load Nil If redeemed on or 0.50% - if redeemed on or If redeemed within 1% - if redeemed within 180(including SIP /STP / before 1 Year from the before 60 days from the 30 days from the days from the date of allotment;SWP, if available) date of allotment - 1%. date of allotment; date of allotment - 0.50% 0.50% - if redeemed after

Nil - if redeemed after 60 days 180 days but within 270 daysfrom the date of allotment. from the date of allotment;

0.25% - if redeemed after270 days but within 365 daysfrom the date of allotment;Nil - if redeemed after 365 daysfrom the date of allotment.


Minimum number 6 installments of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each.& Amount of SIP/SWP/STP (if available)

DEBT SCHEMES

# In respect of purchase/switch-in of units in any of the Schemes (other than Liquid Schemes) for an amount equal to or more than ` 2 Lakhs, the closing NAV (Net Asset Value) of the day shall be applicable subject to realisationof the funds upto 3.00 p.m. and receipt of application (duly time stamped).


7

Particulars Principal Debt Opportunities Principal Principal Retail Principal Debt Savings Principal GlobalFund - Conservative Plan Cash Management Fund Money Manager Fund~ Fund - Retail Plan~ Opportunities Fund

Nature of the An Open-ended Debt Scheme An Open-ended Liquid Scheme An Open-ended Debt Scheme An Open-ended Income Fund An Open-endedScheme Fund of Funds Scheme

Allotment Date

- Regular Plan September 14, 2004 August 30, 2004 December 28, 2007 December 30, 2003 March 29, 2004


Investment Plans/ Regular Plan and Direct Plan. Regular Plan and Direct Plan. Growth & Dividend Regular Plan and Direct Plan. Regular Plan & Direct Plan.Options/ Both the Plans offer Both the Plans offer Both the Plans offer Both the Plans offer Both the Plans offer

Dividend & Growth Option. Dividend & Growth Option. Dividend & Growth Option. Dividend~ and Growth Option. Growth & Dividend Option.Dividend Frequencies Dividend Frequency - Dividend Frequency - Dividend Frequency - Dividend Frequency - Dividend Option under both

Daily / Weekly / Monthly Daily / Weekly / Monthly Regular Plan~: Monthly / Quarterly the Plan offers facility ofDaily / Weekly / Monthly. Payout, Reinvestment andDirect Plan: Monthly Sweep.(Reinvestment)

Fund Manager & Pankaj Jain Pankaj Jain Pankaj Jain Pankaj Jain Rajat JainManaging the January 2012 January 2012 January 2012 January 2012 March 2004Current Fund from


Benchmark Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Liquid Fund Index Crisil Short Term MSCI World IndexBond Fund Index

Minimum New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 5,000 New Investor: ` 10,000Application Amount Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000 Existing Investor: ` 1,000

Cut Off TimeSubscription# 3.00 pm 2.00 pm 3.00 pm 3.00 pm 12.30 pm

Redemption 3.00 pm 3.00 pm 3.00 pm 3.00 pm 12.30 pm

Exit Load Nil Nil Nil If redeemed on or before If redeemed on or before(including SIP /STP / 30 days from the 1 Year from theSWP, if available) date of allotment - 1%. date of allotment - 1%.


Minimum number 6 installments of SIP - ` 2,000/- each, STP - ` 1,000/- each & SWP - ` 500/- each.& Amount of SIP/SWP/STP (if available)

DEBT SCHEMES RETAIL SCHEMESLIQUID SCHEME*

* In respect of Liquid Scheme(s) NAV applicable shall be subject to receipt of valid application/switch-in request at the OPT and credit of entire subscription/switch-in amounts into the Bank Account of the concerning Scheme(s)/Plan(s) and funds are available for utilization by the Scheme(s)/Plan(s), within relevant cut-off time as applicable to the relevant Scheme(s)/Plan(s).

# In respect of purchase/switch-in of units in any of the Schemes (other than Liquid Schemes) for an amount equal to or more than ` 2 Lakhs, the closing NAV (Net Asset Value) of the day shall be applicable subject to realisationof the funds upto 3.00 p.m. and receipt of application (duly time stamped).

~ Subscriptions (by way of purchase / switch in or in any mode) is restricted only for individual investors (including HUFs, Association of Persons & where an individual is an ultimate beneficiary). Further, (a) Daily & Weekly DividendOption and the Payout & Sweep facility to Monthly Dividend Option under Regular Plan of Principal Retail Money Manager Fund and (b) Dividend Option under Regular Plan of Principal Debt Savings Fund - Retail Plan. Direct Planunder the Scheme do not offer this Options.

Funds at a Glance (Contd.)

FUND OF FUNDS SCHEME


8

Principal Large Cap Fund (An open-ended equity scheme)

FUND FEATURES

QAAUM (For the period July to September 2014):` 308.97 crore

NAV per unit (As on October 31, 2014)Direct Plan Regular Plan

Growth Option : ` 45.35 ` 44.87Dividend Option : ` 31.06 ` 30.73

INVESTMENT OBJECTIVE

To provide capital appreciation and /or dividend distribution by predominantly investingin companies having a large market capitalization.

DIVIDEND UPDATE (REGULAR PLAN)

Date Dividend (`/Unit)* Cum Dividend NAV

June 24, 2010 1.5000 20.2200

July 28, 2009 2.0000 17.6700

February 5, 2008 2.0000 23.5600

May 15, 2007 1.5000 17.7600

Past performance may or may not be sustained in the future.

* On face value of ` 10.

Note: All Dividend (`/Unit) figures are Gross Dividend.

RATIOS & OTHER DETAILS (As on October 31, 2014)

Standard Deviation^ (Annualised) 16.24%

Beta^ 0.92

Sharpe Ratio^ (Annualised) 0.66

Portfolio Turnover Ratio** 0.76

Expense Ratio (Regular Plan)#+ 2.53%

Note: ^ The above measures have been calculated by taking rolling returns for a 3 yearperiod with 8.4364% risk free rate of return (91 days - T Bill Rate as on Oct. 29, 2014).** The Portfolio Turnover Rate (PTR) means the lower of aggregate sales or purchases madeduring the 12 month rolling year/period divided by the 12 month rolling year/period Averageasset under Management for the relevant year/period.# Calculated as year to date ratio to average AUM, excluding service tax on management fees.+ Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.and no commission for distribution of Units will be paid / charged under the Direct Plan.

MARKET CAP ALLOCATION (As on October 31, 2014)

% of NAV

Equity & Equity Related Instruments of Large Cap Companies 97.66

Equity & Equity Related Instruments of Mid Cap & Other Companies –

Cash and Other Assets 2.34

PORTFOLIO (As on October 31, 2014)

Instrument Industry % of NAV

Equity 97.66

ICICI Bank Banks 7.53

Larsen & Toubro Construction Project 5.99

Infosys Software 5.93

ITC Consumer Non Durables 5.48

State Bank of India Banks 5.08

Tata Motors Auto 4.47

Shree Cements Cement 4.45

Divi's Laboratories Pharmaceuticals 4.21

Tech Mahindra Software 4.14

26.56%

13.27%

8.95%

7.03%

6.80%

6.21%

5.93%

4.21%

3.55%

2.65%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Banks

Software

Auto

Petroleum Products

Construction Project

Cement

Consumer Non Durables

Pharmaceuticals

Finance

Auto Ancillaries

(% of NAV)

Reliance Industries Petroleum Products 4.13

HDFC Bank Banks 3.66

Housing Development Finance Corporation Finance 3.55

Axis Bank Banks 3.37

Maruti Suzuki India Auto 3.37

Bharat Petroleum Corporation Petroleum Products 2.90

HCL Technologies Software 2.28

Crompton Greaves Industrial Capital Goods 1.79

Indraprastha Gas Gas 1.75

The Federal Bank Banks 1.73

IndusInd Bank Banks 1.70

ING Vysya Bank Banks 1.59

Motherson Sumi Systems Auto Ancillaries 1.53

Adani Ports and Special Economic Zone Transportation 1.43

Sesa Sterlite Minerals/Mining 1.32

National Aluminium Company Non - Ferrous Metals 1.29

UltraTech Cement Cement 1.25

Aditya Birla Nuvo Services 1.24

Oil India Oil 1.16

Apollo Tyres Auto Ancillaries 1.12

Yes Bank Banks 1.05

Tata Steel Ferrous Metals 0.94

Wipro Software 0.92

D.B.Corp Media & Entertainment 0.90

Bank of Baroda Banks 0.85

Voltas Construction Project 0.81

Ashok Leyland Auto 0.67

Oil & Natural Gas Corporation Oil 0.55

The Ramco Cements Cement 0.51

Asian Paints Consumer Non Durables 0.45

Bajaj Auto Auto 0.44

Coromandel International Fertilisers 0.13


Net Assets 100.00

SECTOR ALLOCATION (TOP 10) (As on October 31, 2014)


9

Principal Emerging Bluechip Fund (An open-ended equity scheme)

15.30%

10.49%

9.47%

5.69%

5.23%

4.93%

4.39%

4.38%

4.16%

3.89%

0.00% 5.00% 10.00% 15.00% 20.00%

Banks

Pharmaceuticals

Auto Ancillaries

Cement

Industrial Products


Software

Auto

Consumer Durables

Finance

FUND FEATURES

QAAUM (For the period July to September 2014): ` 353.89 crore




To achieve long-term capital appreciation by investing in equity & equity relatedinstruments of Mid Cap & Small Cap companies.



October 15, 2010 1.0000 27.4300

June 19, 2009 4.0000 19.3500






Beta^ 0.84





MARKET CAP ALLOCATION (As on October 31, 2014)

% of NAV

Equity and equity related instruments of Mid Cap Companies 88.69

Equity and equity related instruments of Small Cap Companies 5.72

Equity and equity related instruments of Companies other thanMid & Small Cap 3.22

Cash and Money Market / Fixed Income Securities(including MIBOR Linked Short Term Papers & Securitised Debt) 0.99

Mutual Funds 0.79

Derivatives 0.59

Market Cap Range for CNX Midcap StocksAs on Sept. 30, 2014 ` 88,426.03 Cr – ` 2,971.67 Crs



Equity 97.63





Eicher Motors Auto 3.16

Sadbhav Engineering Construction Project 2.95


Amara Raja Batteries Auto Ancillaries 2.66

Aurobindo Pharma Pharmaceuticals 2.66

Symphony Consumer Durables 2.54


Gateway Distriparks Transportation 2.21

Yes Bank Banks 1.94


Britannia Industries Consumer Non Durables 1.88

Hindustan Petroleum Corporation Petroleum Products 1.82 (% of NAV)

Bharat Forge Industrial Products 1.75

UPL Pesticides 1.75

JK Cement Cement 1.69

Power Finance Corporation Finance 1.68

Kaveri Seed Company Consumer Non Durables 1.65

Bata India Consumer Durables 1.62

Glenmark Pharmaceuticals Pharmaceuticals 1.60

Oil India Oil 1.60

Cummins India Industrial Products 1.56

Arvind Textile Products 1.54

National Buildings Construction Corpn. Construction 1.53


SRF Textile Products 1.52


Lupin Pharmaceuticals 1.46

Dynamatic Technologies Auto Ancillaries 1.40

IPCA Laboratories Pharmaceuticals 1.39

AIA Engineering Industrial Capital Goods 1.31

The Jammu & Kashmir Bank Banks 1.29

Orient Cement Cement 1.23

Finolex Cables Industrial Products 1.23

V.S.T Tillers Tractors Auto 1.22

Karur Vysya Bank Banks 1.20

CESC Power 1.13

Indiabulls Housing Finance Finance 1.12


Shriram Transport Finance Company Finance 1.09

Oriental Bank of Commerce Banks 1.06

Reliance Infrastructure Power 1.06

Cyient Software 1.04

Atul Chemicals 1.02

Tata Chemicals Chemicals 1.00

Kalpataru Power Transmission Power 0.99

NCC Construction Project 0.99

Pidilite Industries Chemicals 0.99



Torrent Pharmaceuticals Pharmaceuticals 0.95

JK Tyre & Industries Auto Ancillaries 0.95

Hindustan Zinc Non - Ferrous Metals 0.94


Cox & Kings Transportation 0.84

Ramkrishna Forgings Industrial Products 0.69


Transport Corporation of India Transportation 0.47

Derivatives 0.59

Apollo Tyres Nov 2014 Stock Futures 0.59

Investment Funds/Mutual Funds 0.79

Principal Index Fund - Midcap - Direct Plan - Growth Mutual Funds 0.79


Net Assets 100.00



10

Principal Growth Fund (An open-ended equity scheme)

FUND FEATURES

QAAUM (For the period July to September 2014):

` 367.71 crore




To achieve long-term capital appreciation.



December 31, 2007 2.5000 37.1400

March 20, 2006 2.5000 24.6400






Beta^ 1.04




Note: ^ The above measures have been calculated by taking rolling returns for a 3 yearperiod with 8.4364% risk free rate of return (91 days - T Bill Rate as on Oct. 29, 2014).

** The Portfolio Turnover Rate (PTR) means the lower of aggregate sales or purchases madeduring the 12 month rolling year/period divided by the 12 month rolling year/period Averageasset under Management for the relevant year/period.# Calculated as year to date ratio to average AUM, excluding service tax on management fees.+ Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.and no commission for distribution of Units will be paid / charged under the Direct Plan.



Equity 97.14














TVS Motor Company Auto 2.14


Housing Development Finance Corpn. Finance 2.05





Tata Consultancy Services Software 1.82

23.84%

11.15%

10.53%

6.14%

6.11%

5.54%

4.03%

3.98%

3.54%

3.38%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Banks

Software

Auto

Cement

Pharmaceuticals


Petroleum Products

Non - Ferrous Metals


Industrial Products

(% of NAV)

The India Cements Cement 1.79

Cipla Pharmaceuticals 1.76



Andhra Bank Banks 1.58

Jain Irrigation Systems Industrial Products 1.55


PC Jeweller Consumer Durables 1.46


Wipro Software 1.39

Oil India Oil 1.30

Hindustan Construction Company Construction Project 1.30

















Indiabulls Power Power 0.96

Prestige Estates Projects Construction 0.90

Hindalco Industries Non - Ferrous Metals 0.83

UPL Pesticides 0.78

Bank of India Banks 0.76

Jet Airways (India) Transportation 0.73

Union Bank of India Banks 0.72


Mile Stone Global Construction 0.02


Principal Index Fund - Midcap -Direct Plan - Growth Mutual Funds 0.81


Net Assets 100.00



11

20.57%

18.90%

11.51%

9.15%

7.89%

6.11%

6.01%

3.36%

3.14%

2.64%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Banks

Auto


Software

Finance

Petroleum Products

Oil

Cement

Industrial Products

Construction

(% of NAV)

Principal Dividend Yield Fund (An open-ended equity scheme)

Cummins India Industrial Products 2.04

Oil India Oil 1.88

National Buildings Construction Corporation Construction 1.84


Hindustan Petroleum Corporation Petroleum Products 1.74



Century Textiles & Industries Cement 1.69

ACC Cement 1.67



Rural Electrification Corporation Finance 1.63

Castrol India Petroleum Products 1.58




V.S.T Tillers Tractors Auto 1.11

Supreme Industries Industrial Products 1.10


DCM Shriram Consumer Non Durables 1.05





IDFC Finance 0.91

Tata Global Beverages Consumer Non Durables 0.91




Aurionpro Solutions Software 0.83

Kolte - Patil Developers Construction 0.80

PI Industries Pesticides 0.75


Derivatives 0.93

Apollo Tyres Nov 2014 Stock Futures 0.93


Net Assets 100.00


FUND FEATURES


` 121.15 crore

NAV per unit (As on October 31, 2014)

Direct Plan Regular Plan



To provide capital appreciation and / or dividend distribution by investing predominantlyin a well-diversified portfolio of companies that have a relatively high dividend yield.



October 12, 2007 1.5000 15.4400

April 24, 2006 1.5000 15.7200

October 3, 2005 0.7500 13.5100

April 20, 2005 0.5000 11.0900

* On face value of ` 10.Past performance may or may not be sustained in the future.Note: All Dividend (`/Unit) figures are Gross Dividend.



Beta^ 0.90







Equity 98.64

Hero MotoCorp Auto 5.49





Tata Motors - A Class Auto 4.03


Hindustan Unilever Consumer Non Durables 3.48

Bajaj Holdings & Investment Finance 3.25

VST Industries Consumer Non Durables 2.55

SML Isuzu Auto 2.51

Gateway Distriparks Transportation 2.49




Colgate Palmolive (India) Consumer Non Durables 2.37



12

Principal Index Fund - Nifty (An open-ended index scheme)

FUND FEATURES


` 13.42 crore





To invest principally in securities that comprise CNX Nifty (NSE) and subject to trackingerrors endeavour to attain results commensurate with the Nifty.



December 24, 2008 3.7500 15.7934




Beta^ 0.99





** The Portfolio Turnover Rate (PTR) means the lower of aggregate sales or purchases madeduring the 12 month rolling year/period divided by the 12 month rolling year/period Averageasset under Management for the relevant year/period.

# Calculated as year to date ratio to average AUM.+ Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.and no commission for distribution of Units will be paid / charged under the Direct Plan.

TRACKING DEVIATION

1.04%*

* Trailing 12 months ended October 31, 2014 (Annualized).



Equity 100.00













Sun Pharmaceuticals Industries Pharmaceuticals 2.26

Mahindra & Mahindra Auto 2.16

Bharti Airtel Telecom - Services 1.96

Hindustan Unilever Consumer Non Durables 1.86(% of NAV)

22.26%

15.90%

9.94%

9.72%

6.87%

6.53%

6.06%

4.81%

3.17%

2.84%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Banks

Software


Auto

Finance

Petroleum Products

Pharmaceuticals


Oil

Power

Kotak Mahindra Bank Banks 1.70



Dr. Reddy's Laboratories Pharmaceuticals 1.43


Wipro Software 1.31

Hero MotoCorp Auto 1.31





Power Grid Corporation of India Power 1.14


NTPC Power 1.10




GAIL (India) Gas 0.87

Coal India Minerals/Mining 0.86

Bharat Heavy Electricals Industrial Capital Goods 0.83

Grasim Industries Cement 0.79


IDFC Finance 0.70

Zee Entertainment Enterprises Media & Entertainment 0.67


Ambuja Cements Cement 0.62


Tata Power Company Power 0.60

Cairn India Oil 0.58

ACC Cement 0.50

Punjab National Bank Banks 0.49

NMDC Minerals/Mining 0.48

Jindal Steel & Power Ferrous Metals 0.21

DLF Construction 0.20


Net Assets 100.00



13

Principal Index Fund - Midcap (An open-ended index scheme)

FUND FEATURES


` 14.18 crore





To invest principally in securities that comprise CNX Midcap Index and subject to trackingerrors endevour to attain results commensurate with the CNX Midcap Index.








Equity 99.62



Eicher Motors Auto 2.24


UPL Pesticides 1.85

Bharti Infratel Telecom - Equipment & Accessories 1.80



Glenmark Pharmaceuticals Pharmaceuticals 1.78

Container Corporation of India Transportation 1.78

Ranbaxy Laboratories Pharmaceuticals 1.74


Indian Oil Corporation Petroleum Products 1.60


Oil India Oil 1.58

Hindustan Petroleum Corporation Petroleum Products 1.55

Reliance Infrastructure Power 1.52

Apollo Hospitals Enterprise Healthcare Services 1.50

Indiabulls Housing Finance Finance 1.45

MRF Auto Ancillaries 1.42

Mahindra & Mahindra Financial Services Finance 1.41


Siemens Industrial Capital Goods 1.37

Cadila Healthcare Pharmaceuticals 1.28

Exide Industries Auto Ancillaries 1.28

Oracle Financial Services Software Software 1.27



Steel Authority of India Ferrous Metals 1.21

Havells India Consumer Durables 1.21


Piramal Enterprises Pharmaceuticals 1.16



GlaxoSmithKline Consumer Healthcare Consumer Non Durables 1.14

Tata Global Beverages Consumer Non Durables 1.14

MindTree Software 1.13

Bajaj Finserv Finance 1.13

Pidilite Industries Chemicals 1.12


ABB India Industrial Capital Goods 1.09


Petronet LNG Gas 1.06


Canara Bank Banks 1.02(% of NAV)

13.65%

10.08%

9.11%

8.24%

7.00%

5.07%

4.81%

4.59%

3.40%

3.15%

0.00% 4.00% 8.00% 12.00% 16.00%

Pharmaceuticals

Finance

Banks


Auto Ancillaries

Industrial Capital Goods

Power

Software

Auto

Petroleum Products


Amara Raja Batteries Auto Ancillaries 0.95

Reliance Power Power 0.95

Reliance Capital Finance 0.95

The Indian Hotels Company Hotels 0.93

Procter & Gamble Hygiene and Health Care Consumer Non Durables 0.91

Emami Consumer Non Durables 0.89


Bajaj Finance Finance 0.86


United Breweries Consumer Non Durables 0.82

Max India Finance 0.78

Arvind Textile Products 0.77

Torrent Pharmaceuticals Pharmaceuticals 0.75

CRISIL Finance 0.74

The Great Eastern Shipping Company Transportation 0.74

Bharat Electronics Industrial Capital Goods 0.74

Jubilant Foodworks Consumer Non Durables 0.73

CESC Power 0.71


Bata India Consumer Durables 0.68

Thermax Industrial Capital Goods 0.67

The South Indian Bank Banks 0.66

Just Dial Software 0.64


Biocon Pharmaceuticals 0.62

GMR Infrastructure Construction Project 0.60

MphasiS Software 0.59

JSW Energy Power 0.58

IRB Infrastructure Developers Construction 0.58

Sun TV Network Media & Entertainment 0.57

NHPC Power 0.57

Kansai Nerolac Paints Consumer Non Durables 0.56


Century Textiles & Industries Cement 0.55

Sanofi India Pharmaceuticals 0.54

L&T Finance Holdings Finance 0.53

CMC Software 0.51

Strides Arcolab Pharmaceuticals 0.51


Tata Communications Telecom - Services 0.51


Gujarat State Petronet Gas 0.49

Unitech Construction 0.49

Torrent Power Power 0.48

IDBI Bank Banks 0.47

Allahabad Bank Banks 0.45

Syndicate Bank Banks 0.45

Godrej Industries Consumer Non Durables 0.45

KPIT Technologies Software 0.45

IFCI Finance 0.44

The Karnataka Bank Banks 0.41

Housing Development and Infrastructure Construction 0.39

TV18 Broadcast Media & Entertainment 0.37

Bhushan Steel Ferrous Metals 0.12


Net Assets 100.00



14

Principal SMART Equity Fund (An open-ended equity scheme)








Oil India Oil 0.59


Yes Bank Banks 0.53


Wipro Software 0.47

D.B. Corp Media & Entertainment 0.46









Certificate of Deposit 14.87

State Bank of Mysore A1+ 7.45

Axis Bank A1+ 7.42

Commercial Paper 32.47

L&T Fincorp A1+ 14.80

JK Cement A1+ 7.37

Edelweiss Commodities Services A1+ 7.35

Muthoot Finance A1+ 2.95


Net Assets 100.00

SECTOR ALLOCATION OF EQUITY INSTRUMENTS (TOP 10) (As on October 31, 2014)

FUND FEATURES


` 58.21 crore





The primary objective of the scheme is to seek to generate long term capital appreciationwith relatively lower volatility through systematic allocation of funds into equity; and indebt /money market instruments for defensive purposes. The Scheme will decide onallocation of funds into equity assets based on equity market Price Earning Ratio(PE Ratio) levels. When the markets become expensive in terms of 'Price to Earnings'Ratio'; the Scheme will reduce its allocation to equities and move assets into debtand/or money market instruments and vice versa.



Beta^ 1.16








Instrument Industry/Rating % of NAV

Equity 49.59





















(% of NAV)

13.48%

6.74%

4.54%

3.57%

3.45%

3.16%

3.01%

2.14%

1.80%

1.35%

0.00% 4.00% 8.00% 12.00% 16.00%

Banks

Software

Auto

Petroleum Products


Cement


Pharmaceuticals

Finance

Auto Ancillaries


15

Principal Personal Tax Saver Fund (An open-ended equity linked savings scheme)

FUND FEATURES


` 370.43 crore


Direct Plan : ` 149.40

Regular Plan : ` 147.91


To provide long term growth of capital. The Investment Manager will aim to achieve areturn on assets in excess of the performance of S&P BSE 100 Index.



March 25, 2008 40.0000 124.66

February 26, 2008 20.0000 172.57

December 31, 2007 11.0000 221.26

October 30, 2007 11.0000 190.53

March 13, 2006 10.0000 118.96

November 2, 2005 40.0000 124.43




Beta^ 0.93








Equity 98.34

















26.69%

13.34%

8.98%

7.09%

6.88%

6.26%

6.01%

4.28%

3.61%

2.67%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Banks

Software

Auto

Petroleum Products


Cement


Pharmaceuticals

Finance

Auto Ancillaries

(% of NAV)












Oil India Oil 1.16


Yes Bank Banks 1.05


Wipro Software 0.93











Net Assets 100.00



16

Principal Tax Savings Fund (An open-ended equity linked savings scheme)

FUND FEATURES


` 251.23 crore


Direct Plan : ` 136.65

Regular Plan : ` 135.46


To build a high quality growth-oriented portfolio to provide long-term capital gains tothe investors. The scheme aims at providing returns through capital appreciation.



October 31, 2008 8.0000 90.1200

January 15, 2007 5.0000 83.6600




Beta^ 1.04








Equity 97.65































Wipro Software 1.39




Oil India Oil 1.31


















UPL Pesticides 0.78






Net Assets 100.00


(% of NAV)

23.91%

11.19%

10.57%

6.20%

6.12%

5.56%

4.04%

4.03%

3.58%

3.38%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Banks

Software

Auto

Cement

Pharmaceuticals



Petroleum Products


Industrial Products


17

Principal Balanced Fund (An open-ended balanced scheme)

16.82%

7.92%

7.53%

4.35%

4.35%

4.03%

2.87%

2.80%

2.52%

2.41%

0.00% 5.00% 10.00% 15.00% 20.00%

Banks

Software

Auto

Cement

Pharmaceuticals


Petroleum Products



Industrial Products

(% of NAV)











Wipro Software 0.98





Oil India Oil 0.91


















UPL Pesticides 0.55







Treasury Bill 0.17

T-Bill 182 Day 2014 Sovereign 0.17

Sovereign 2.21

8.83% GOI -M - 25-Nov-2023 Sovereign 2.21

Bonds & NCDs 2.18

Housing Development Finance Corpn. AAA 2.18


Net Assets 100.00

SECTOR ALLOCATION OF EQUITY INSTRUMENTS (TOP 10) (As on October 31, 2014)

FUND FEATURES


` 21.91 crore




To provide long term appreciation and current income by investing in a portfolio ofequity, equity related securities and fixed income securities.



March 24, 2008 2.5000 14.9200

November 5, 2007 6.0000 23.9000

November 9, 2005 3.2000 16.4100

Past performance may or may not be sustained in the future. * On face value of ` 10.Note: All Dividend (`/Unit) figures are Gross Dividend.



Beta^ 1.08






AVERAGE MATURITY (As on October 31, 2014)

0.86 years

MODIFIED DURATION (As on October 31, 2014)

0.6 years


Instrument Industry / Rating % of NAV

Equity 69.08





















18

Principal Debt Savings Fund (An open-ended income fund)

- Monthly Income Plan (Monthly Income is not assured and is subject to the availability of distributable surplus.)


Instrument Industry/Rating % of NAV

Derivatives 2.05

NIFTY Index Future Nov 2014 Index Futures 2.05




IFMR Capital Finance Private Ltd A1+ 15.82

Treasury Bill 1.01


Sovereign 35.33

8.40% GOI -M- 28-Jul-2024 Sovereign 20.63

08.83% GOI -M- 25-Nov-2023 Sovereign 14.70

Bonds & NCDs 16.60

Power Finance Corporation Ltd AAA 6.27

Fullerton India Credit Company Ltd AA+ 6.20

LIC Housing Finance Ltd AAA 4.13


Principal Index Fund - Direct - Growth Plan Mutual Funds 10.31


Net Assets 100.00

COMPOSITION BY ASSETS (As on October 31, 2014)

Industry / Ratings % of NAV

Sovereign 35.33

Bonds & NCDs 16.60




Derivatives 2.05

Treasury Bill 1.01


RATING PROFILE (As on October 31, 2014)

FUND FEATURES


` 24.67 crore



Growth Option : ` 27.5168 ` 27.1299Dividend Option (Monthly) : ` 11.0199 ` 10.9231Dividend Option (Quarterly) : ` 12.7157 ` 12.4440


To generate regular income through investments in fixed income securities so as tomake periodical income distribution to the Unitholders and also to generate long-termcapital appreciation by investing a portion of the Scheme’s assets in equity and equityrelated instruments.

DIVIDEND UPDATE

Date Regular Plan Direct Plan

Dividend Cum Dividend Cum(`/Unit)* Dividend (`/Unit)* Dividend

NAV NAV

Monthly Dividend (Last 3 Months)

October 22, 2014 0.0738 10.8869 0.0786 10.9855

September 24, 2014 0.0882 10.8704 0.0785 10.9520

August 22, 2014 0.0778 10.8567 0.0534 10.9058

Quarterly Dividend (Last 3 Quarters)

September 24, 2014 0.3005 12.5012 0.11747 12.5748

June 24, 2014 0.4923 12.6638 0.58530 12.8054

June 24, 2013 0.1000 12.3283 0.1000 12.3757


RATIO (As on October 31, 2014)

Portfolio Turnover Ratio** –


AVERAGE MATURITY OF THE DEBT PORTFOLIO (As on October 31, 2014)

4.28 years

MODIFIED DURATION OF THE DEBT PORTFOLIO (As on October 31, 2014)

2.9 years

(% of NAV)

36.34%

32.18%

10.40%

14.88%

6.20%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%

Sovereign

A1+

AAA

AA+

Cash and Other Assets (incl. MF Units & Index Futures)


19

Principal Government Securities Fund(An open-ended dedicated gilt scheme investing in government securities)


Instrument Rating % of NAV

Sovereign 95.28

8.60% GOI -M- 02-JUN-2028 Sovereign 33.81

08.83% GOI -M- 25-NOV-2023 Sovereign 26.11

9.20% GOI -M- 30-SEP-2030 Sovereign 16.61

7.16% GOI -M- 20-MAY-2023 Sovereign 12.27

8.97% GOI -M- 05-DEC-2030 Sovereign 5.82

7.02% KARNATAKA BANK -SDL- M-13-JAN-2015 Sovereign 0.66


Net Assets 100.00


Ratings % of NAV

Sovereign 95.28



FUND FEATURES


` 50.36 crore



Growth Option : ` 26.2322 ` 25.9934

Dividend Option (Quarterly) : ` 12.2117 ` 12.1730

Dividend Option (Annual) : ` 13.8458 ` 13.4366


To generate return through investment in sovereign securities and thus provide capitalgains and income distribution to its Unitholders.

DIVIDEND UPDATE



NAV NAV

Quarterly Dividend Option (Last 3 Quarters)

September 24, 2014 0.2602 12.0872 0.2747 12.1324

June 24, 2014 0.0717 11.8658 0.1317 11.9551

June 24, 2013 0.3000 12.1624 0.3000 12.1911

Annual Dividend Option (Last 3 Years)

September 24, 2014 1.1532 14.2079 1.2578 14.7028

September 24, 2013 0.7559 13.7794 0.4192 13.8300

September 24, 2012 0.8000 14.1275 – –



11.6 years


6.31 years

MATURITY PROFILE

Period Portfolio (%)

Less than 3 years 0.66

5 - 10 years 38.38

10 - 15 years 33.81

Above 15 years 22.43


95.28%

4.72%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Sovereign

Cash and Other Assets

(% of NAV)


20

Principal Income Fund - Long Term Plan (An open-ended income scheme)




Vodafone India A1+ 3.02

Sovereign 70.79

08.83% GOI -M - 25-NOV-2023 Sovereign 28.64

8.60% GOI -M - 02-JUN-2028 Sovereign 21.87

7.16% GOI - M -20-MAY-2023 Sovereign 11.91

9.20% GOI -M-30-SEP-2030 Sovereign 4.61

8.97% GOI -M-05-DEC-2030 Sovereign 3.76

Bonds & NCDs 19.88

Power Finance Corporation AAA 12.41

Reliance Utilities and Power P. Ltd AAA 6.90

Rural Electrification Corporation AAA 0.57


Net Assets 100.00


Ratings % of NAV

Sovereign 70.79

Bonds & NCDs 19.88




FUND FEATURES


` 73.42 crore



Growth Option : ` 22.8039 ` 22.4812

Dividend Option (Quarterly) : ` 13.3555 ` 13.2948

Dividend Option (Annual) : ` 11.7844 ` 11.4577


To generate regular income and capital appreciation/accretion through investment indebt instruments and related securities besides preservation of capital.

DIVIDEND UPDATE



NAV NAV

Quarterly Dividend Option (Last 3 Quarters)

September 24, 2014 0.2291 13.2017 0.2495 13.2729

June 24, 2014 0.3918 13.3283 0.5050 13.4906

June 24, 2013 0.3000 13.2785 0.3000 13.3264

Annual Dividend Option (Last 3 Years)

September 24, 2014 0.9630 12.1429 1.0896 12.5807

September 24, 2013 0.7029 11.8468 0.4597 11.9117

September 24, 2012 1.0000 12.3525 – –



9.13 years


4.96 years

MATURITY PROFILE

Period Portfolio (%)

Less than 1 year 3.59

3 - 5 years 12.41

5 - 10 years 47.45

Above 10 years 30.24

Cash and Others Assets 6.31

70.79%

19.88%

3.02%

6.31%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

Sovereign

AAA

A1+


(% of NAV)


21

Principal Debt Opportunities Fund - Corporate Bond Plan(An open-ended debt scheme)




Cox & Kings A1+ 27.64

Aditya Birla Finance A1+ 26.64

JK Cement A1+ 21.25

Bilt Graphic Paper Products Ltd A1+ 20.25

Vodafone India A1+ 0.90

Treasury Bill 0.04


Bonds & NCDs 3.07

ONGC Videsh AAA 1.34

Cholamandalam Investment andFinance Company AA 0.67



Housing Development Finance Corporation AAA 0.13


Net Assets 100.00


Industry / Ratings % of NAV


Bonds & NCDs 3.07

Treasury Bill 0.04



FUND FEATURES


` 5.93 crore



Growth Option : ` 2089.9139 ` 2068.9673

Dividend Option (Monthly) : ` 1241.5325 ` 1238.3909


The primary objective is to generate income and capital gains through investments in aportfolio of securities issued by Private and Public Sector Companies.

DIVIDEND UPDATE



NAV NAV


October 22, 2014 13.0724 1248.5909 13.1706 1251.6345

September 24, 2014 10.4597 1245.9782 11.3617 1249.8256

August 22, 2014 6.1422 1241.6607 6.8594 1245.3233

* On face value of ` 1,000/-.


All Dividend (`/Unit) figures are Gross Dividend.


42 days


41 days

(% of NAV)

96.68%

2.40%

0.67%

0.21%

0.04%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

A1+

AAA

AA

Sovereign



22

Principal Income Fund – Short Term Plan (An open-ended income scheme)

FUND FEATURES


` 92.28 crore



Growth Option : ` 23.8133 ` 23.5252Dividend Option (Monthly) : ` 12.9044 ` 12.8696


To generate regular income and capital appreciation/ accretion through investment indebt instruments and related securities besides preservation of capital and has beendesigned to achieve stable returns over shorter-term investment horizons.

DIVIDEND UPDATE



NAV NAV


October 22, 2014 0.1329 12.9523 0.1399 12.9917

September 24, 2014 0.1175 12.9369 0.1254 12.9772

August 22, 2014 0.0611 12.8805 0.0679 12.9197



2.41 years


1.85 years




Union Bank of India A1+ 5.17

Canara Bank A1+ 1.01


IFMR Capital Finance Private A1+ 7.06



Treasury Bill 1.22


39.50%

23.61%

16.62%

4.69%

5.14%

10.44%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

AAA

A1+

Sovereign

AA+

AA


(% of NAV)

Sovereign 15.40

8.35% GOI 2022 14-May-2022 Sovereign 5.21

8.12% GOI -M- 10-DEC-2020 Sovereign 5.16

7.28% GOI -M- 03-JUN-2019 Sovereign 5.03

Bonds & NCDs 54.63



Tata Motors AA+ 10.44

Power Grid Corporation of India AAA 5.33

LIC Housing Finance AAA 5.30

Cholamandalam Investment andFinance Company AA 4.69


Net Assets 100.00


Ratings % of NAV

Bonds & NCDs 54.63


Sovereign 15.40


Treasury Bill 1.22




23

Principal Bank CD Fund (An open-ended debt scheme)





Corporation Bank A1+ 19.26

Bank Of Baroda A1+ 16.58

Bank of India A1+ 8.70

The Jammu & Kashmir Bank A1+ 8.19


The Ratnakar Bank A1+ 0.08

Treasury Bill 0.19


Bonds & NCDs 15.89

Kotak Mahindra Prime AAA 7.94

Small Industries Development Bank of India AAA 3.98



Net Assets 100.00


Ratings % of NAV


Bonds & NCDs 15.89

Treasury Bill 0.19



FUND FEATURES


` 135.40 crore



Growth Option : ` 1740.2230 ` 1727.6261



The objective is to generate returns by primarily investing in Bank CDs. Bank CDs provideliquidity and a relatively lower credit risk.

DIVIDEND UPDATE



NAV NAV


October 22, 2014 7.6355 1132.2616 8.2090 1133.9317

September 24, 2014 8.4039 1133.0300 9.0796 1134.8023

August 22, 2014 6.6676 1131.2937 7.2594 1132.9821

* On face value of ` 1,000/-




127 days


125 days

82.85%

15.89%

0.19%

1.07%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

A1+

AAA

Sovereign


(% of NAV)


24

78.82%

4.27%

2.20%

0.09%

12.88%

1.74%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

A1+

A1

Sovereign

AA

AA+


Principal Debt Opportunities Fund - Conservative Plan(An open-ended debt scheme)

FUND FEATURES


` 472.17 crore



Growth Option : ` 2151.4438 ` 2126.1255

Dividend Option (Daily) : ` 1001.7605 ` 1001.5677

Dividend Option (Weekly) : ` 1002.9635 ` 1000.9415



To generate regular income and capital appreciation through investments in debtsecurities and money market instruments.

DIVIDEND UPDATE



NAV NAV


October 22, 2014 7.5059 1146.6252 8.3475 1149.4214

September 24, 2014 8.1726 1147.2919 9.1655 1150.2394

August 22, 2014 6.8938 1146.0131 7.7642 1148.8381





61 days


60 days




State Bank of Bikaner and Jaipur A1+ 8.54





Indian Bank A1+ 0.67


National Bank for Agriculture &Rural Development A1+ 8.56

JM Financial Products A1+ 8.46


Magma Housing Finance A1+ 4.29

Kotak Commodity Services A1+ 4.28

Dewan Housing Finance Corporation A1+ 4.28

Au Financiers (India) A1 4.27

Power Finance Corporation A1+ 4.08



JK Lakshmi Cement A1+ 2.56


The Ramco Cements A1+ 0.86

Aditya Birla Finance A1+ 0.86

JK Cement A1+ 0.51

Treasury Bill 2.20



BONDS & NCDs 1.83

Shriram City Union Finance AA 1.74

Lafarge India Pvt. Ltd AA+ 0.09


Net Assets 100.00


Ratings % of NAV



Treasury Bill 2.20

BONDS & NCDs 1.83



(% of NAV)

Past performance is no guarantee of future result. (++ for rating methodology please refer page 35.)

CreditRisk Rating[ICRA] AAAmfs ++


25

Principal Cash Management Fund (An open-ended liquid scheme)

76.74%

14.96%

8.04%

0.26%

0.00% 20.00% 40.00% 60.00% 80.00%

A1+

Sovereign

Unrated


(% of NAV)

CreditRisk Rating[ICRA] A1+mfs++

Past performance is no guarantee of future result. (++ for rating methodology please refer page 35.)

Maithon Power A1+ 4.02

TVS Credit Services A1+ 4.00

Magma ITL Finance A1+ 2.81


Sabero Organics Gujarat A1+ 1.77

The Ramco Cements A1+ 1.61

Kotak Commodity Services A1+ 1.20

Religare Housing Development Financial Corpn. A1+ 1.19


Steel Authority of India A1+ 0.40

Treasury Bill 14.96





Fixed Deposit 8.04

Corporation Bank Unrated 8.04


Net Assets 100.00


Ratings % of NAV



Treasury Bill 14.96

Fixed Deposit 8.04



FUND FEATURES


` 1,579.56 crore



Growth Option : ` 1313.4526 ` 1311.1694Dividend Option (Daily) : ` 1000.3870 ` 1000.3037Dividend Option (Weekly) : ` 1007.2238 ` 1006.5077Dividend Option (Monthly) : ` 1024.9242 ` 1024.8895


To provide investors with as high a level of income available from short-term investmentsas is considered consistent with preservation of capital and maintenance of liquidity, byinvesting in a portfolio of money market and investment grade debt instruments.

DIVIDEND UPDATE



NAV NAV


October 22, 2014 6.8650 1029.5894 6.9202 1029.6614

September 24, 2014 7.9351 1030.6595 8.0010 1030.7422

August 22, 2014 6.8699 1029.5943 6.9269 1029.6681





31 days


31 days





Dena Bank A1+ 11.98

Oriental Bank of Commerce A1+ 4.00

IDBI Bank A1+ 2.01


IndusInd Bank A1+ 0.40


National Bank for Agriculture &Rural Development A1+ 7.98



Principal Global Opportunities Fund (An open-ended Fund of Funds scheme)

FUND FEATURES


` 23.96 crore



Growth Option: ` 22.8937 ` 22.7435

Dividend Option: ` 22.8937 ` 22.7435


To provide long term capital appreciation by predominantly investing in overseas mutualfund schemes, and a certain portion of its corpus in Money Market Securities and/orunits of Money Market / Liquid Schemes of Principal Mutual Fund.


Instrument % of NAV

Foreign Securities

I. Units of Mutual Fund / Unit Trust 96.54Principal Global Investors Funds -Emerging Markets Equity Fund

II. Cash and Other Current Assets 3.46

Net Assets 100.00

Principal Retail Money Manager Fund (An open-ended debt scheme)

FUND FEATURES


` 24.38 crore



Growth Option : ` 1524.6562 ` 1521.8696

Dividend Option (Daily) : N.A. ` 1005.4300

Dividend Option (Weekly) : N.A. ` 1012.8202



To generate regular income & capital appreciation through investments in debt securitiesand money market instruments.

DIVIDEND UPDATE



NAV NAV


October 22, 2014 7.2978 1066.127 7.3793 1066.2479

September 24, 2014 8.4281 1067.2573 8.5247 1067.3933

August 22, 2014 7.3173 1066.1465 7.4029 1066.2715





33 days


33 days

94.65%

1.83%

3.52%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

A1+

Sovereign


(% of NAV)










Sabero Organics Gujarat A1+ 11.21


JK Cement A1+ 3.70


Treasury Bill 1.83




Net Assets 100.00


Ratings % of NAV



Treasury Bill 1.83




26


27

Principal Debt Savings Fund (An open-ended income fund)

- Retail Plan

40.23%

39.65%

16.25%

2.41%

1.46%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

A1+

AAA

AA+

Sovereign


FUND FEATURES


` 23.78 crore


Direct Plan Regular PlanGrowth Plan : ` 23.9189 ` 23.5590Dividend Plan (Monthly) : N.A. ` 10.2812Dividend Plan (Quarterly) : ` 12.0706 ` 11.9933


To seek to generate stable returns and capital appreciation through investment in Debtinstruments and related securities over medium to long term investment horizon.

DIVIDEND UPDATE



NAV NAV


October 22, 2014 0.0985 10.3455 – –

September 24, 2014 0.0807 10.3277 – –

August 24, 2014 0.0659 10.3129 – –

Quarterly Dividend (Last 3 Quarters)

September 24, 2014 0.2332 12.0730 0.2557 12.1627

June 24, 2014 0.2491 12.0679 0.2714 12.1556

March 24, 2014 0.2170 12.0393 0.2380 12.124




RATIO (As on October 31, 2014)

Portfolio Turnover Ratio** –



1.35 years


1.15 years




The Jammu & Kashmir Bank A1+ 14.36





Treasury Bill 1.46


Bonds & NCDs 55.90



Fullerton India Credit Company Ltd AA+ 10.98

Bajaj Finance AA+ 4.40

Power Grid Corporation of India AAA 2.20

Lafarge India Pvt. Ltd. AA+ 0.87


Net Assets 100.00


Industry / Ratings of NAV

Bonds & NCDs 55.90



Treasury Bill 1.46



(% of NAV)


28

SCHEMES MANAGED BY MR. ANUPAM TIWARI

Returns (As on September 30, 2014)

SCHEMES MANAGED BY MR. RAJAT JAIN

SCHEMES MANAGED BY RUPALI PANDIT

PRINCIPAL LARGE CAP FUND

Performance Scheme Returns Scheme’s Benchmark Additional Benchmark

Plan - Regular Plan - Direct (S&P BSE 100 Index) (CNX Nifty Index)

Date ^Returns (%) $PTP Returns (`) ^Returns (%) $PTP Returns (`) ^Returns (%) $PTP Returns (`) ^Returns (%) $PTP Returns (`)

30-Sep-13 to 30-Sep-14 49.79 14978.98 50.56 15055.79 40.05 14005.15 38.87 13887.33

28-Sep-12 to 30-Sep-13 -1.89 9810.93 N.A. N.A. 0.39 10038.60 0.56 10056.11

30-Sep-11 to 28-Sep-12 16.31 11631.35 N.A. N.A. 14.13 11412.66 15.38 11537.55

Since Inception 11-Nov-05 to 30-Sep-14 17.75 42750.00 N.A. N.A. 13.54 30919.20 13.67 31251.05

Since Inception 02-Jan-13 to 30-Sep-14 N.A. N.A. 20.46 13830.88 17.27 13199.06 17.73 13289.62

PRINCIPAL SMART EQUITY FUND


Plan - Regular Plan - Direct (Crisil Balanced Fund Index) (CNX Nifty Index)


30-Sep-13 to 30-Sep-14 42.50 14250.46 43.47 14346.64 28.89 12889.12 38.87 13887.33

28-Sep-12 to 30-Sep-13 0.00 10000.00 N.A. N.A. 1.87 10187.27 0.56 10056.11

30-Sep-11 to 28-Sep-12 15.89 11588.98 N.A. N.A. 13.72 11372.04 15.38 11537.55

Since Inception 16-Dec-10 to 30-Sep-14 12.42 15590.00 N.A. N.A. 8.25 13507.29 8.00 13389.03


PRINCIPAL GLOBAL OPPORTUNITIES FUND


Plan - Regular Plan - Direct (MSCI World Index) (CNX Nifty Index)


30-Sep-13 to 30-Sep-14 -0.25 9975.32 0.13 10012.81 13.09 11308.52 38.87 13887.33

28-Sep-12 to 30-Sep-13 14.30 11430.11 N.A. N.A. 19.78 11978.38 0.56 10056.11

30-Sep-11 to 28-Sep-12 24.11 12411.08 N.A. N.A. 18.37 11836.69 15.38 11537.55

Since Inception 29-Mar-04 to 30-Sep-14 8.06 22598 N.A. N.A. 4.32 15602.97 15.43 45201.90


Past performance may or may not be sustained in future. Since Inception Returns (in %) are calculated on Compounded Annualised Basis.$ PTP (Point to Point) Returns is based on standard investment of ` 10,000/- made at the beginning of relevant period.Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable. ^ Growth Option# As the scheme has not completed one year, the performance/returns for this scheme is not provided

PRINCIPAL INDEX FUND - NIFTY


Plan - Regular Plan - Direct (CNX Nifty Index) (S&P BSE Sensex)


30-Sep-13 to 30-Sep-14 38.48 13848.02 39.17 13917.36 38.87 13887.33 37.41 13741.40

28-Sep-12 to 30-Sep-13 1.78 10178.08 N.A. N.A. 0.56 10056.11 3.29 10328.86

30-Sep-11 to 28-Sep-12 14.71 11470.97 N.A. N.A. 15.38 11537.55 14.03 11403.31

Since Inception 27-Jul-99 to 30-Sep-14 11.85 54802.70 N.A. N.A. 12.62 60806.96 12.27 57977.74


PRINCIPAL PERSONAL TAX SAVER FUND




30-Sep-13 to 30-Sep-14 49.93 14993.08 50.69 15069.42 40.05 14005.15 38.87 13887.33

28-Sep-12 to 30-Sep-13 -1.62 9837.66 N.A. N.A. 0.39 10038.60 0.56 10056.11

30-Sep-11 to 28-Sep-12 15.82 11581.76 N.A. N.A. 14.13 11412.66 15.38 11537.55

Since Inception 31-Mar-96 to 30-Sep-14 22.33 417184.20 N.A. N.A. 12.55 89205.18 11.95 80836.29


PRINCIPAL INDEX FUND - MIDCAP#

Performance ^Returns (%)

Date Plan - Regular Plan - Direct Scheme’s Benchmark Additional Benchmark(CNX Midcap Index) (CNX Nifty Index)

Since Inception 12-May-14 to 30-Sep-14 N.A. N.A. N.A. N.A.


29

SCHEMES MANAGED BY BEKXY KURIAKOSE

PRINCIPAL GOVERNMENT SECURITIES FUND


Plan - Regular Plan - Direct (I-Sec Composite Index) (CRISIL 10 Year Gilt Index)


30-Sep-13 to 30-Sep-14 8.72 10872.05 9.27 10926.56 11.12 11111.65 6.85 10684.74

28-Sep-12 to 30-Sep-13 3.60 10359.96 N.A. N.A. 4.97 10496.92 2.45 10244.68

29-Sep-11 to 28-Sep-12 8.10 10810.13 N.A. N.A. 10.07 11007.12 8.03 10802.90

Since Inception 23-Aug-01 to 30-Sep-14 7.32 25245.00 N.A. N.A. N.A. N.A. N.A. N.A.


PRINCIPAL DEBT OPPORTUNITIES FUND - CORPORATE BOND PLAN


Plan - Regular Plan - Direct (Crisil Composite Bond Fund Index) (CRISIL 10 Year Gilt Index)


30-Sep-13 to 30-Sep-14 9.83 10982.78 10.50 11049.98 11.61 11161.16 6.85 10684.74

28-Sep-12 to 30-Sep-13 6.53 10653.07 N.A. N.A. 3.49 10349.47 2.45 10244.68

29-Sep-11 to 28-Sep-12 9.68 10967.55 N.A. N.A. 9.53 10952.72 8.03 10802.90

Since Inception 14-Sep-04 to 30-Sep-14 7.42 20523.75 N.A. N.A. 6.25 18381.69 4.92 16206.22


PRINCIPAL INCOME FUND - LONG TERM PLAN


Plan - Regular Plan - Direct (Crisil Composite Bond Fund Index) (CRISIL 10 Year Gilt Index)


30-Sep-13 to 30-Sep-14 8.55 10854.78 9.43 10943.43 11.61 11161.16 6.85 10684.74

28-Sep-12 to 30-Sep-13 4.65 10465.40 N.A. N.A. 3.49 10349.47 2.45 10244.68

29-Sep-11 to 28-Sep-12 11.28 11127.50 N.A. N.A. 9.53 10952.72 8.03 10802.90

Since Inception 09-May-03 to 30-Sep-14 7.14 21946.20 N.A. N.A. 5.87 19172.86 4.97 17381.55



Past performance may or may not be sustained in future. Since Inception Returns (in %) are calculated on Compounded Annualised Basis.$ PTP (Point to Point) Returns is based on standard investment of ` 10,000/- made at the beginning of relevant period.Performance of the dividend option for the investors would be net of dividend distribution tax, as applicable.^ Growth Option

SCHEMES MANAGED BY MR. DHIMANT SHAH

PRINCIPAL EMERGING BLUECHIP FUND


Plan - Regular Plan - Direct (CNX Midcap Index) (CNX Nifty Index)


30-Sep-13 to 30-Sep-14 87.42 18741.68 88.51 18850.99 63.17 16316.64 38.87 13887.33

28-Sep-12 to 30-Sep-13 -2.85 9715.39 N.A. N.A. -10.75 8925.33 0.56 10056.11

30-Sep-11 to 28-Sep-12 23.06 12299.12 N.A. N.A. 10.55 11052.37 15.38 11537.55



PRINCIPAL DIVIDEND YIELD FUND


Plan - Regular Plan - Direct (CNX Dividend Opportunities Index) (CNX Nifty Index)


30-Sep-13 to 30-Sep-14 55.45 15544.83 56.20 15620.14 35.53 13553.28 38.87 13887.33

28-Sep-12 to 30-Sep-13 -10.05 8995.04 N.A. N.A. -8.11 9189.20 0.56 10056.11

30-Sep-11 to 28-Sep-12 16.53 11653.01 N.A. N.A. 14.88 11488.33 15.38 11537.55

Since Inception 15-Oct-04 to 30-Sep-14 13.00 33810.00 N.A. N.A. N.A. N.A. 16.13 44372.14



30


SCHEMES MANAGED BY MR. P.V.K. MOHAN

SCHEMES MANAGED BY MR. GURVINDER SINGH WASAN

PRINCIPAL GROWTH FUND




30-Sep-13 to 30-Sep-14 64.75 16474.90 65.66 16565.60 42.50 14250.39 38.87 13887.33

28-Sep-12 to 30-Sep-13 0.95 10094.89 N.A. N.A. -1.11 9888.84 0.56 10056.11

30-Sep-11 to 28-Sep-12 20.16 12015.96 N.A. N.A. 13.77 11377.08 15.38 11537.55

Since Inception 25-Oct-00 to 30-Sep-14 16.85 87630.00 N.A. N.A. 16.06 79715.64 14.65 67275.95


PRINCIPAL TAX SAVINGS FUND




30-Sep-13 to 30-Sep-14 64.90 16489.79 65.53 16552.82 42.50 14250.39 38.87 13887.33

28-Sep-12 to 30-Sep-13 1.00 10100.49 N.A. N.A. -1.11 9888.84 0.56 10056.11

30-Sep-11 to 28-Sep-12 21.04 12103.55 N.A. N.A. 13.77 11377.08 15.38 11537.55

Since Inception 31-Mar-96 to 30-Sep-14 17.41 195018.50 N.A. N.A. 12.88 94147.08 11.95 80836.29


PRINCIPAL BALANCED FUND


Plan - Regular Plan - Direct (Crisil Balanced Fund Index) (CNX Nifty Index)


30-Sep-13 to 30-Sep-14 44.30 14429.76 45.55 14555.45 28.89 12889.12 38.87 13887.33

28-Sep-12 to 30-Sep-13 1.82 10181.53 N.A. N.A. 1.87 10187.27 0.56 10056.11

30-Sep-11 to 28-Sep-12 14.97 11496.94 N.A. N.A. 13.72 11372.04 15.38 11537.55

Since Inception 14-Jan-00 to 30-Sep-14 11.08 46940.00 N.A. N.A. N.A. N.A. 11.41 49082.11


PRINCIPAL BANK CD FUND


Plan - Regular Plan - Direct (CRISIL Liquid Fund Index) (CRISIL 1 Year T-Bill Index)


30-Sep-13 to 30-Sep-14 9.35 10935.38 9.88 10988.38 9.49 10948.61 8.35 10835.47

28-Sep-12 to 30-Sep-13 8.65 10865.27 N.A. N.A. 8.59 10858.83 5.70 10569.65

29-Sep-11 to 28-Sep-12 9.56 10955.57 N.A. N.A. 8.67 10867.33 8.14 10813.62



PRINCIPAL INCOME FUND - SHORT TERM PLAN


Plan - Regular Plan - Direct (CRISIL Short-Term Bond Fund Index) (CRISIL 10 Year Gilt Index)


30-Sep-13 to 30-Sep-14 9.09 10908.65 9.87 10987.22 10.12 11011.72 6.85 10684.74

28-Sep-12 to 30-Sep-13 7.73 10772.97 N.A. N.A. 7.78 10777.58 2.45 10244.68

29-Sep-11 to 28-Sep-12 10.20 11020.33 N.A. N.A. 9.21 10920.83 8.03 10802.90





31


SCHEMES MANAGED BY MR. PANKAJ JAIN

PRINCIPAL DEBT OPPORTUNITIES FUND - CONSERVATIVE PLAN




30-Sep-13 to 30-Sep-14 8.65 10864.68 9.58 10957.86 9.49 10948.61 8.35 10835.47

28-Sep-12 to 30-Sep-13 8.93 10893.36 N.A. N.A. 8.59 10858.83 5.70 10569.65

29-Sep-11 to 28-Sep-12 10.00 10999.94 N.A. N.A. 8.67 10867.33 8.14 10813.62

Since Inception 14-Sep-04 to 30-Sep-14 7.72 21110.55 N.A. N.A. 7.01 19749.44 5.70 17452.86


PRINCIPAL DEBT SAVINGS FUND - MONTHLY INCOME PLAN


Plan - Regular Plan - Direct (Crisil MIP Blended Index) (Crisil 10 year Gilt Index)


30-Sep-13 to 30-Sep-14 11.44 11144.10 12.28 11228.07 15.45 11545.35 6.85 10684.74

28-Sep-12 to 30-Sep-13 1.61 10160.52 N.A. N.A. 3.22 10321.65 2.45 10244.68

29-Sep-11 to 28-Sep-12 8.27 10827.25 N.A. N.A. 10.38 11038.42 8.03 10802.90



PRINCIPAL DEBT SAVINGS FUND - RETAIL PLAN


Plan - Regular Plan - Direct (CRISIL Short-Term Bond Fund Index) (CRISIL 10 Year Gilt Index)


30-Sep-13 to 30-Sep-14 9.27 10926.88 10.09 11009.16 10.12 11011.72 6.85 10684.74

28-Sep-12 to 30-Sep-13 6.26 10625.79 N.A. N.A. 7.78 10777.58 2.45 10244.68

29-Sep-11 to 28-Sep-12 8.54 10854.45 N.A. N.A. 9.21 10920.83 8.03 10802.90



PRINCIPAL CASH MANAGEMENT FUND




30-Sep-13 to 30-Sep-14 9.31 10930.95 9.41 10940.91 9.49 10948.61 8.35 10835.47

28-Sep-12 to 30-Sep-13 8.97 10896.57 N.A. N.A. 8.59 10858.83 5.70 10569.65

29-Sep-11 to 28-Sep-12 9.82 10982.35 N.A. N.A. 8.67 10867.33 8.14 10813.62

Since Inception 30-Aug-04 to 30-Sep-14 7.54 20826.10 N.A. N.A. 6.99 19779.65 5.68 17467.20


PRINCIPAL RETAIL MONEY MANAGER FUND




30-Sep-13 to 30-Sep-14 9.68 10968.48 9.79 10979.46 9.49 10948.61 8.35 10835.47

28-Sep-12 to 30-Sep-13 9.48 10948.33 N.A. N.A. 8.59 10858.83 5.70 10569.65

29-Sep-11 to 28-Sep-12 9.84 10983.81 N.A. N.A. 8.67 10867.33 8.14 10813.62





32

Short Term Capital Long Term Capital Dividend Tax on Distributed TDS onGains Tax (STCG)2 Gains Tax (LTCG)2 Income Income Capital Gains7

Financial Year 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15

Resident Individual / 15% 15% Nil Nil Exempt Exempt Nil Nil Nil NilHUF / AOP / BOI

Resident 15% 15% Nil Nil Exempt Exempt Nil Nil Nil NilPartnership Firms

Domestic 15% 15% Nil Nil Exempt Exempt Nil Nil Nil NilCompanies

NRIs4 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - 15%2 STCG - 15%2

LTCG - Nil LTCG - Nil

FIIs 4 & 10 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - Nil6 STCG - Nil6

LTCG - Nil6 LTCG - Nil6

QFI 4 & 10 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - 15%2 STCG - 15%2

(Individual / HUF) LTCG - Nil LTCG - Nil

QFI4 & 10 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - 15%2 STCG - 15%2

(Companies) LTCG - Nil LTCG - Nil

FPI4 & 10 15% 15% Nil Nil Exempt Exempt Nil Nil STCG - Nil6 STCG - Nil6

LTCG - Nil6 LTCG - Nil6

Short Term Long Term Dividend Tax on Distributed Tax on Distributed TDS onCapital Gains Capital Gains Income Income - Other than Income - Liquid / Capital Gains7

Tax2 & 13 Tax 2 & 13 Liquid / Money Money MarketMarket Schemes Schemes

2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-1411 2014-1511&12 2013-1411 2014-1511&12 2013-14 2014-15

Resident As per As per 10% 20% Exempt Exempt 12.50% 25% 25% 25% Nil NilIndividual / slab rates slab rates (20% with (With Indexation) (from 1-4-2013

HUF Indexation) Option to tax to 31-5-2013)

@10% 25%Without Indexation (from 1-6-2013

(if transferred onwards)between

1-4-2014 to10-7-2014)

AOP/BOI As per As per 10% 20% Exempt Exempt 30% 30% 30% 30% Nil Nil slab rates slab rates (20% with (With Indexation)

Indexation) Option to tax

@10%Without Indexation

(if transferredbetween

1-4-2014 to10-7-2014)

Domestic 30% 30% 10% 20% Exempt Exempt 30% 30% 30% 30% Nil NilCompanies / (20% with (With Indexation)

Firms Indexation) Option to tax

@10%Without Indexation

(if transferredbetween

1-4-2014 to10-7-2014)

NRIs4 As per As per Listed Units - Listed Units - Exempt Exempt 12.50% 25% 25% 25% STCG - 30%2 STCG - 30%2

slab rates slab rates 10% 20% (from 1-4-2013 LTCG - 20%2 LTCG - 20%2

(20% with (with Indexation) to 31-5-2013) 5% with indexation with indexationIndexation) Option to tax 25% for IDFs for listed units. for listed units.

@10% (from 1-6-2013 10%2 10%2

Unlisted Without Indexation onwards) without indexation without indexation

Units - 10% (if transferred 5% for IDFs for unlisted units5 for unlisted units5

(without Indexation)5 between (from 1-6-2013

1-4-2014 to onwards)

10-7-2014)

UnlistedUnits - 10%

(without Indexation)5

EQUITY ORIENTED FUNDS (SUBJECT TO STT3)

OTHER THAN EQUITY ORIENTED FUNDS (including Infrastructure Debt Funds8)

(Contd. on next page)

Tax Rates for Mutual Fund Investors1

as per the Finance (No.2) Act, 2014 – SNAPSHOT


33



OTHER THAN EQUITY ORIENTED FUNDS (including Infrastructure Debt Funds8) [Contd.]

1 It is assumed that the mutual fund units are held as capital assets by the investors.

2 Plus applicable surcharge [refer note 9], if any, and Education Cess at the rate of 2% on income-tax and surcharge and Secondary and Higher Education cess at the rate of 1% on income-tax and surcharge.

3 Securities Transaction Tax ('STT') is applicable only in respect of sale of units of Equity-oriented funds ('EOFs') on a recognised stock exchange and redemption of EOUs by the mutual fund. Purchase/ sale/ redemptionof units other than EOUs are not subject to STT.

4 Non-resident investors (such as FIIs, QFIs, FPIs, etc.) shall be entitled to be governed by provisions of the applicable Tax Treaty, which India has entered with the country of residence of the non-resident investor, if thatis more beneficial than the provisions of the Income-tax Act, 1961('the Act'), subject to certain conditions. As per section 90(4) of the Act, a non-resident shall not be entitled to claim treaty benefits, unless the non-resident obtains a Tax Residency Certificate of being a resident of his home country. Furthermore, as per section 90(5) of the Act, non-resident is also required to provide such other documents and information, asprescribed by CBDT, as applicable.

5 As per section 112 of the Act (as amended by the Finance Act, 2012), long-term capital gains in case of non-residents would be taxable @ 10% on transfer of capital assets, being unlisted securities, computed withoutgiving effect to first & second proviso to section 48 i.e. without taking benefit of foreign currency fluctuation and indexation benefit.

6 Section 196D of the Act provides that no tax is required to be withheld for payment to a FII / FPI in respect of capital gains arising on transfer of units.

7 As per provisions of Section 206AA of the Act, if there is default on the part of a non-resident investor (entitled to receive redemption proceeds from the Mutual Fund on which tax is deductible under Chapter XVII ofthe Act) to provide its Permanent Account Number, the tax shall be deducted at higher of the following rates: i) rates specified in relevant provisions of the Act; or ii) rate or rates in force; or iii) rate of 20%.

8 "Infrastructure debt fund" means an infrastructure debt fund as defined in clause 1 of the regulation 49L of the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996. As per clause 1 of regulation49L , an 'infrastructure debt fund scheme' would mean, a scheme which invests primarily (minimum 90% of scheme assets) in debt securities or securitized debt instrument of infrastructure companies or infrastructurecapital companies or infrastructure projects or special purpose vehicles, etc. or other permissible assets in accordance with these regulations or bank loans in respect of completed and revenue generating projects ofinfrastructure companies or projects or special purpose vehicles.

Short Term Long Term Dividend Tax on Distributed Tax on Distributed TDS onCapital Gains Capital Gains Income Income - Other than Income - Liquid / Capital Gains7

Tax2 & 13 Tax 2 & 13 Liquid / Money Money MarketMarket Schemes Schemes

2013-14 2014-15 2013-14 2014-15 2013-14 2014-15 2013-1411 2014-1511&12 2013-1411 2014-1511&12 2013-14 2014-15

FIIs4 & 10 30% 30% 10% 10% Exempt Exempt 30% 30% 30% 30% STCG - Nil6 STCG - Nil6

without Indexation without Indexation LTCG - Nil6 LTCG - Nil6

5% for 5% forIDFs IDFs

(from 1.6.2013onwards)

QFI4 & 10 As per As per Listed Units - Listed Units - Exempt Exempt 12.50% 25% 25% 25% STCG - 30%2 STCG - 30%2

(Individual/ slab rates slab rates 10% 20% (from 1-4-2013 LTCG - 20%2 LTCG - 20%2

HUF) (20% with (with Indexation) to 31-5-2013) 5% with indexation with indexationIndexation) Option to tax 25% for IDFs for listed units. for listed units.

@10% (from 1-6-2013 10%2 10%2

Unlisted Without Indexation onwards) without indexation without indexation

Units - 10% (if transferred 5% for IDFs for unlisted units5 for unlisted units5

(without Indexation)5 between (from 1-6-2013

1-4-2014 to onwards)

10-7-2014)

UnlistedUnits - 10%


QFI10 40% 40% Listed Units - Listed Units - Exempt Exempt 30% 30% 30% 30% STCG - 40%2 STCG - 40%2

(Companies) 4 10% 20% LTCG - 20%2 LTCG - 20%2

(20% with (with Indexation) 5% for IDFs 5% with indexation with indexationIndexation) Option to tax (from 1-6-2013 for IDFs for listed units. for listed units.

@10% onwards) 10%2 10%2

Unlisted Without Indexation without indexation without indexation

Units - 10% (if transferred for unlisted units5 for unlisted units5

(without Indexation)5 between

1-4-2014 to10-7-2014)

UnlistedUnits - 10%


FPI 4 & 10 30% 30% 10% 10% Exempt Exempt 30% 30% 30% 30% STCG - Nil6 STCG - Nil6

without Indexation without Indexation LTCG - Nil6 LTCG - Nil6

5% for 5% forIDFs IDFs

(from 1.6.2013onwards)

(Contd. on next page)

34



INCOME TAX RATES FOR INDIVIDUAL / HUF / AOP / BOI for AY 2015-16

Total Income Tax Rates (c)

Up to ` 250,000 (a)(b)(d) NIL

` 250,001 to ` 500,000 10%

` 500,001 to ` 1,000,000 20%

` 1,000,001 and above 30%

(a) In the case of a resident individual of the age of 60 years or more but less than 80 years, the basic exemption limit is ` 300,000.

(b) In the case of a resident individual of the age of 80 years or more, the basic exemption limit is ` 5,00,000.

(c) Plus, surcharge on income-tax, as applicable and education cess is applicable at the rate of 2% on income-tax and secondary and higher education cess at the rate of 1%on income-tax.

(d) Rebate of upto ` 2,000 available for resident individuals whose total income does not exceed ` 5,00,000.

This information is being provided for basic guidance for investments in mutual funds and is based on provisions of the Income-tax Act, 1961, as amended by the Finance (No. 2)Act, 2014. The tax implications may vary for each assessee based on the details of his income. All rates and figures appearing are for illustrative purposes only. Tax benefitsare subject to change in tax laws. Contents of this note have been drawn for informative purpose only and the same should not be used or considered as an investment/tax advice.The AMC/Trustee/Sponsor accepts no liability whatsoever for any direct or consequential loss arising from any information provided in this note.

WEALTH TAX ON MF UNITS

Wealth Tax MF units are exempt

SECURITIES TRANSACTION TAX

Equity Oriented Fund

STT on sale of a unit of equity oriented mutual fund to the mutual fund is levied at 0.001%.

No STT is chargeable on purchase of units of an equity oriented mutual fund entered into in recognised stock exchange w.e.f. 1.6.2013.

STT on sale of a unit of an equity oriented mutual fund where the transaction is entered into in recognized stock exchange and the contract for sale is settled by the actualdelivery is levied at 0.001%.

Other than Equity Oriented Fund: Purchase/ sale/ redemption of units other than equity-oriented units shall not be subject to STT.

Mutual Fund would also pay securities transaction tax wherever applicable on the securities bought/sold.

As per Section 94(7): The loss due to sale of Units in the schemes (where income distributed on MF units is tax free) will not be available for set-off to the extent of the tax freeincome distributed; if units are: (A) Bought within three months prior to the record date fixed for income distribution; and (B) sold within nine months after the record date fixedfor income distribution.

As per Section 94(8): The loss due to sale of original Units in the schemes, where bonus Units are issued, will not be available for setoff; if original units are :- (A) Bought withinthree months prior to the record date fixed for allotment of bonus units; and (B) sold within nine months after the record date fixed for allotment of bonus units.

However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units held on the date of transfer of original units.

9 Surcharge applicable for FY 2014-15:

Type of Investor Surcharge rate as a % of Income-tax

If income is If income exceeds ` 1 crore If income exceedsless than ` 1 crores but less than ` 10 crores ` 10 crores

Resident Individual, HUF, AOP and Partnership Firm Nil 10% 10%

Domestic Company Nil 5% 10%

Foreign Company Nil 2% 5%

Foreign non-corporate Nil 10% 10%

10 The FPI Regulations replaced the existing SEBI (Foreign Institutional Investor) Regulations, 1995 and the Qualified Foreign Investors framework, and are effective from 7 January 2014. As per Notification No. 9/2014dated 22 January 2014, the Central Government has specified the Foreign Portfolio Investors registered under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, as ‘ForeignInstitutional Investor’ for the purposes of clause (a) of the Explanation to section 115AD of the Act.

11 Rates are exclusive of surcharge at the rate of 10% and education cess at the rate of 3%.

12 With effect from 1 October 2014, as per Finance (No. 2) Act, 2014, additional tax on income distributed to unit-holders would be levied on the amount of income to be distributed including such additional tax(i.e. grossing-up), as against levy on only the amount of income to be distributed, thereby resulting in a higher effective rate of tax on distributed income.

13 Capital gains arising on the transfer or redemption of other than equity oriented units (from 1 April 2014 to 10 July 2014) held for a period of 12 months or more, immediately preceding the date of transfer should beregarded as ‘long term capital gains’. Capital gains arising on transfer or redemption of such units on or after 11 July 2014 should be regarded as long-term capital gains if such units are held for a period of 36 monthsor more immediately preceding the date of transfer.



35

Understanding Ratios & Risk Measures

� STANDARD DEVIATION - Is the average deviation from the mean returns. It is an indication of volatility i.e. deviation from mean

returns. Lower the better.

• For instance a scheme that has a consistent four-year return of 3% would have a mean or average of 3%. The standard deviation for

this scheme would then be zero because the scheme's return in any given year does not differ from its four-year mean of 3%.

• On the other hand, a scheme that in each of the last four years returned -5%, 17%, 2% and 30% will have a mean return of 11%. The

scheme will also exhibit a high standard deviation because each year the return of the scheme differs from the mean return. This

scheme is therefore riskier because it fluctuates widely between negative and positive returns within a short period.

Calculation = Square Root of Variance. Where Variance is the average of the squared deviations from mean returns.

� BETA - Can be interpreted as percentage change in price of a scheme for every one percentage change in the market benchmark. For

example if a scheme's beta is 1.1 and the market is expected to go up/down by 10% then the scheme will move up/down by 11%.

Calculation = Covariance of Market and Scheme's Returns Divided by Variance of the Market. Where Covariance is the Deviation of

Mean Returns of Market multiplied by Deviation of Mean Returns of the scheme.

� JENSEN'S ALPHA - Gives the average return of the portfolio over and above the risk free rate and market determined return. This is

the addition by the fund manager over and above the market return and hence higher the better.

Calculation = Portfolio Return - (Risk Free Rate of Return + beta [market return - Risk Free Rate of Return]).

� SHARPE - Gives the returns per unit of risk. i.e. for every 1 unit of risk what is the returns of the scheme. For this purpose risk is defined

as standard deviation of the scheme. Higher the Sharpe, the better.

It signifies that scheme with a higher sharpe ratio generates returns taking lesser risk. In other words, the scheme is less volatile and

yet generating good returns. Thus, given same returns, the scheme with a higher Sharpe ratio offers a better avenue for investing.

Calculation = Average Scheme Return - Risk Free Rate of Return :_ Standard Deviation of the Scheme.

� PORTFOLIO TURNOVER - Portfolio turnover is a measure of how actively a fund manager trades the portfolio of your scheme. Expressed

in percentage or number of times, the inverse of a scheme's turnover ratio is the average holding period for a security in that scheme.

If a scheme has a 20 per cent turnover ratio, it would suggest that on average that scheme will hold a security for five years before

selling it. A scheme with a 200 per cent turnover ratio will change its portfolio in six months or in other words, replace the entire

holdings in its portfolio with new stocks in six months.

Calculation = Lower of sales or purchases divided by average AUM for last rolling 12 months.

DISCLAIMER:

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

This factsheet is for informative purpose only and under no circumstances is to be used or considered as an investment advice. Terms of issue / load structure/

Scheme specific risk factors are set forth in the Scheme Information Document(SID). Copy of the same is available at all our Investor Service Centres.

Alternatively, Investor can download the SID from our website - www.principalindia.com or can call us at 1800 425 5600 to get a copy of the same.

++ ICRA has assigned credit risk rating of [ICRA]A1+mfs to Principal Cash Management Fund. The rating is the highest-credit-quality short-term rating assigned by ICRA to debt funds. It hasalso assigned the credit risk rating of [ICRA] AAAmfs to Principal Debt Opportunities Fund - Conservative Plan. The rating is the highest-credit-quality long term rating assigned by ICRA to debtfunds. Rating methodology used by ICRA is based on evaluating the inherent credit quality of the mutual funds portfolio. As a measure of the credit quality of a debt fund’s assets, ICRA usesthe concept of “credit scores”, based on ICRA’s assessment of credit risk associated with each exposure of the portfolio taking into account its maturity. To quantify the credit risk scores,ICRA uses its database of historical default rates for various rating categories for various maturity buckets. The credit risk ratings incorporate ICRA’s assessment of a debt fund's publishedinvestment objectives and policies, its management characteristics, and the creditworthiness of its investment portfolio. ICRA reviews relevant fund information on an ongoing basis to supportits published rating opinions. If the portfolio credit score meets the benchmark of the assigned rating during the review, the rating is retained. In an event that the benchmark credit score isbreached, ICRA gives a month's time to the debt fund manager to bring the portfolio credit score within the benchmark credit score. If the debt fund manager is able to reduce the portfoliocredit score within the benchmark credit score, the rating is retained. If the portfolio still continues to breach the benchmark credit score, the rating is revised to reflect the change in creditquality. The ratings should, however, not be construed as an indication of the prospective performance of the Mutual fund scheme or of volatility in its returns. ICRA ratings should not betreated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance which may lead to a revision in ratings. Source: ICRA Ltd.

Offices of AMC Identified as Official Point of Acceptance (OPA) / Investor Service Centres (ISC)

Principal Pnb Asset Management Company Private Limited - OPA & ISC:

• Mumbai: Exchange Plaza, ‘B’ wing, Ground Floor, NSE Building, Bandra Kurla Complex, Bandra (East), Mumbai-400 051

Principal Pnb Asset Management Company Private Limited - ISC:

• Ahmedabad: 102, Megha House, Opp. Kotak Mahindra Bank, Mithakhali Law Garden Road, Ahmedabad-380 006 • Bengaluru: Salarpuria Landmark,

2nd Floor, Unit No. 2002, 100 Feet Road, HAL II Stage, Bengaluru-560 038 • Chandigarh: SCO No. 145-146, 1st Floor, Sector 9-C, Chandigarh-160 009

• Chennai: Nirupama & Neelima Building, New Unit No.55, Vijaya Raghava Road, T. Nagar, Chennai-600 017 • Hyderabad: ANR Center, Unit No. 201,

1st Floor, Road No.1, Banjara Hills, Hyderabad - 500 034 • Jaipur: 61-A, Vasanti, Sardar Patel Marg, C-Scheme, Jaipur-302 001 • Kolkata: Bachhawat

House, Premises No.2, Dr. Martin Luther King Sarani, (Formerly Upper Wood Street), Kolkata-700 016 • Lucknow: Rohtas Trident, 1st Floor, 10,

Rana Pratap Marg, Lucknow-226 001 • New Delhi: Unit No. 001 & 002, Gr. Floor, DLF Capitol Point, Baba Kharag Singh Marg, New Delhi-110 001

• Pune: Unit No: 103 & 104, 1st Floor, Rainbow Plaza, Opp. Modern Highschool, Jangali Maharaj Road, Shivaji Nagar, Pune - 411 005.

Centres of Karvy Computershare Private Limited (R&T to Principal Mutual Fund) which have been identified as Official Point of Acceptance:

Agra: 1st Floor, Deepak Wasan Plaza, Behind Holiday Inn, Opp. Megdoot Furnitures, Sanjay Place, Agra-282 002 • Ahmedabad: 201/202 Shail, Opp. Madhusudan House,Navrangpura, Ahmedabad-380 006 • Ajmer: S. No. 1 & 2, 2nd Floor, Ajmer Tower, Kutchery Road, Ajmer-305 001 • Aligarh: 1st Floor, Kumar Plaza, Aligarh-202 001• Allahabad: RSA Towers, 2nd Floor, Above Sony TV Showroom, 57, S.P. Marg, Civil Lines, Allahabad-211 001 • Amritsar: 72-A, Taylor's Road, Opp. Aga Heritage Club,Amritsar-143 001 • Anand: B-42 Vaibhav Commercial Center, Nr TVS Down Town Show Room, Grid Char Rasta, Anand-380 001 • Asansol: 114/71, G.T. Road, Near Sony Centre,Bhanga Pachil, Asansol-713 303 • Aurangabad: Ramkunj Niwas, Railway Station Road, Near Osmanpura Circle, Aurangabad-431 005 • Bangalore: 59, Skanda Puttanna Road,Basavanagudi, Bangalore-560 004 • Bankura: Ambika Market Complex, Gr. Floor, Nutanganj, Post & Dist Bankura, Bankura-722 101 • Bareilly: 1st Floor, 165, Civil Lines, Opp.Hotel Bareilly Palace, Near Railway Station, Bareilly-243 001 • Belgaum: CTS No. 3939/ A2 A1, Above Raymonds Show Room, Beside Harsha Appliances, Club Road, Belgaum-590 001 • Bharuch: Shop No. 147-148, Aditya Complex, Near Kasak Circle, Bharuch-392 001 • Bhatinda: #2047-A 2Nd Floor, The Mall Road, Above Max New York LifeInsurance, New Delhi-151 001 • Bhavnagar: G-11 Giranjali Complex, Beside Bhavnagar Municipal Corporation & Collector Office, Kalanala, Bhavnagar-364 001 • Bhilai: Shop No.1, First Floor, Plot No.1, Commercial Complex, Nehru Nagar (East), Bhilai-490 020 • Bhopal: Kay Kay Business Centre, 133, Zone I, M.P. Nagar, Above City Bank, Bhopal-462 011• Bhubaneshwar: A/181 , Back Side of Shivam Honda Show Room, Saheed Nagar, Bhubaneswar-751 007 • Bikaner: 70-71, 2nd Floor, Dr. Chahar Building, Panchsati Circle, SadulGanj, Bikaner-334 001 • Bokaro: B-1, 1st Floor, City Centre, Sector-4, Near Sona Chandi Jwellars, Bokaro-827 004 • Burdwan: 63 G.T. Road, Halder Complex 1st Floor, Burdwan-713 101 • Calicut: 2nd Floor, Soubhagya Shopping Complex, Arayidathpalam, Mavoor Road, Calicut-673 004 • Chandigarh: SCO 371-372, Above HDFC Bank, Sector 35-B,Chandigarh-160 036 • Chennai: F-11, Akshaya Plaza, 1st Floor, 108, Adhithanar Salai, Egmore, Opp. Chief Metropolitan Court, Chennai-600 002 • Cochin: Ali Arcade, 1st Floor,Kizhavana Road, Panampilly Nagar, Near Atlantis Junction, Ernakualm-682 036 • Coimbatore: 3rd Floor, Jaya Enclave, 1056/1057 Avinashi Road, Coimbatore-641 018• Cuttack: P.O. - Buxi Bazar, Cuttack, Opp. Dargha Bazar, Dargha Bazar, Cuttack-753 001 • Dehradun: Kaulagarh Road, Near Sirmaur Margabove, Reliance Webworld, Dehradun-248 001 • Dhanbad: 208 New Market, 2nd Floor, Bank More, Dhanbad-826 001 • Durgapur: 1st Floor, Old Dutta Automobile Bldg., Nachan Road, Benachity, Durgapur-713 213• Erode: No. 4, Veerappan Traders Complex, KMY Salai, Sathy Road, Opp. Erode Bus Stand, Erode-638 003 • Faridabad: A-2B, 1st Floor, Nehru Groundnit, Faridabad-121 001• Ghaziabad: 1st Floor, C-7, Lohia Nagar, Ghaziabad-201 001 • Gorakhpur: Above V.I.P. Houseajdacent, A.D. Girls College, Bank Road, Gorakpur-273 001 • Gurgaon: Shop No.18,Gr. Floor, Sector-14, Opp. AKD Tower, Near Huda Office, Gurgaon-122 001 • Guwahati: 54 Sagarika Bhawan, 2nd Floor, R.G. Barooah Road, AIDC, Near Baskin Robbins, Guwahati-781 024 • Gwalior: 2nd Floor, Rajeev Plaza, Jayendra Ganj, Lashkar, Gwalior. M.P.-474 009 • Hubli: 22 & 23, 3rd Floor, Eureka Junction, Travellers Bunglow, Hubli-580 029• Hyderabad: 8-2-596, Avenue 4, Karvy Plaza, Street No. 1, Banjara Hills, Hyderabad-500 034 • Indore: 2nd Floor, 203-205, Balaji Corporates, Above ICICI Bank, 19/1 NewPalasia, Indore-452 001 • Jabalpur: Grover Chamber, 43 Naya Bazar Malviya Chowk, Opp. Shyam Market, Jabalpur-482 002 • Jaipur: S-16/A 3rd Floor, Land Mark Building, Opp.Jai Club, Mahaver Marg C-Scheme, Jaipur-302 001 • Jalandhar: Arora Prime Tower, Lower Ground Floor, Office No. 3, Plot No. 28, Jalandhar-144 001 • Jalgaon: 113, Navi Peth,B/H Mahalaxmi Dairy, Jalgaon-425 001 • Jammu: 5 A/D Extension 2, Near Panama Chowk Petrol Pump, Panama Chowk, Jammu-180 012 • Jamnagar: 108 Madhav Palaza, Opp.SBI Bank, Near Lal Bunglow, Jamnagar-361 001 • Jamshedpur: 2nd Floor, R.R. Square, SB Shop Area, Near Reliance Foot Print & Hotel, BS Park Plaza, Main Road, Bistupur,Jamshedpur-831 001 • Jodhpur: 203, Modi Arcade, Chopasni Road, Jodhpur-342 001 • Junagadh: 124-125 Punit Shopping Center, M.G. Road, Ranavav Chowk, Junagadh-362001 • Kanpur: 15/46, B, Gr. Floor, Opp. Muir Mills, Civil Lines, Kanpur-208 001 • Karnal: 18/369, Char Chaman, Kunjpura Road, Behind Miglani Hospital, Karnal-132 001• Kolhapur: 605/1/4, E Ward, Shahupuri 2nd Lane, Laxmi Niwas, Near Sultane Chambers, Kolhapur-416 001 • Kolkata: 166 A, Rashbihari Avenue, 2nd Floor, Opp. Fortish Hospital,Kolkata-700 029 • Kota: 29,1st Floor, Near Lala Lajpat Rai Circle, Shopping Centre, Kota-324 007 • Kottayam: 1st Floor Csiascension Square, Railway Station Road, CollectorateP. O., Kottayam-686 002 • Lucknow: 24, Prem Nagar, Ashok Marg, Lucknow-226 001 • Ludhiana: SCO-136, 1st Floor, Above Airtel Showroom, Feroze Gandhi Market, Ludhiana-141 001 • Madurai: Rakesh Towers, 30-C, 1st Floor, Bye Pass Road, Opp. Nagappa Motors, Madurai-625 010 • Malda: Sahis Tuli, Under Ward No.6, No.1 Govt Colony, EnglishBazar Municipality, Malda-732 101 • Mangalore: Mahendra Arcade, Opp. Court Road, Karangal Padi, Mangalore-575 003 • Meerut: 1st Floor, Medi Centre, Opp. ICICI Bank, HapurRoad, Near Bachha Park, Meerut-250 002 • Mehsana: Ul-47, Apollo Enclave, Opp. Simandhar Temple, Modhera Cross Road, Mehsana-384 002 • Moradabad: Om Arcade, ParkerRoad, Above Syndicate Bank, Chowk Tari Khana, Moradabad-244 001 • Mumbai: 24/B, Raja Bahadur Compound, Ambalal Doshi Marg, Behind BSE Bldg., Fort, Mumbai-400 001• Mumbai - Borivali: Gr. Floor, Himanshu Bldg., Sodawala Lane, Lina Chandawarkar Road, Borivali, Mumbai-400 091 • Mumbai - Thane: 101, Yashwant Building, Ram Ganesh,Godkari Path, Ram Maruti Road, Naupada, Thane-400 602 • Muzaffarpur: 1st Floor, Uma Market, Thana Gumtimoti Jheel, Muzaffarpur-842 001 • Mysore: L-350, Silver Tower,Ashoka Road, Opp. Clock Tower, Mysore-570 001 • Nadiad: 104/105, Near Paras Cinema, City Point Nadiad, Nadiad-387 001 • Nagpur: Plot No. 2/1, House No 102/1,Mangaldeep Appartment, Mata Mandir Road, Opp. Khandelwal Jewelers, Dharampeth, Nagpur-440 010 • Nasik: S-12,Suyojit Sankul, Sharanpur Road, Near Rajiv Gandhi Bhavan,Nasik-422 002 • Navsari: 1/1 Chinmay Aracade, Opp. Sattapir Road, Tower Road, Navsari-396 445 • New Delhi: 305, New Delhi House, 27, Barakhamba Road, New Delhi -110001 • Noida: 307, Jaipuria Plaza, D-68-A, 2nd Floor, Opp. Delhi Public School, Sector 26, Noida-201 301 • Panipat: 1st Floor, Krishna Tower, Above Amertex, G.T. Road, Panipat-132 103 • Panjim: City Business Centre, Coelho Pereira Building, Room No. 18,19 & 20, Dada Vaidya Road, Panjim-403 001 • Patiala: SCO-27 D, Chotti Baradari, Near Car Bazaar,Patiala-147 001 • Patna: 3-A, 3rd Floor, Anand Tower, Exhibition Road, Opp. ICICI Bank, Patna-800 001 • Pondicherry: No. 7, Thiayagaraja Street, Pondicherry-605 001• Pune: Office # 16, Gr. Floor, Shrinath Plaza, Near Dyaneshwar Paduka Chowk , F. C. Road, Pune-411 005 • Raipur: 2 & 3, Lower Level, Millenium Plaza, Room No. L 1, 2 & 3, BehindIndian Coffee House, Raipur-492 001 • Rajkot: 104, Siddhi Vinyak Complex, Opp. Ramkrishna Ashram, Dr. Yagnik Road, Rajkot, Rajkot-360 001 • Ranchi: Room No. 307, 3rdFloor, Commerce Tower, Beside Mahabir Tower, Ranchi-834 001 • Rourkela: 1st Floor, Sandhu Complex, Kachery Road, Uditnagar, Rourekla-769 012 • Salem: No. 40, 2nd Floor,Brindavan Road, Fairlands, Near Perumal Koil, Salem-636 016 • Shillong: Annex Mani Bhawan, Lower Thana Road, Near R K M Lp School, Shillong-793 001 • Shimla: TriveniBuilding, By Pas Chowkkhallini, Shimla-171 002 • Siliguri: Nanak Complex, Sevoke Road, Siliguri-734 001 • Surat: G-5, Empire State Buliding, Near Udhna Darwaja, Ring Road,Surat-395 002 • Tirunelveli: 55/18, Jeney Building, S.N. Road, Near Aravind Eye Hospital, Tirunelveli-627 001 • Trichur: 2nd Floor, Brothers Complex, Naikkanal Junction, ShornurRoad, Near Dhanalakshmi Bank H O, Thrissur-680 001 • Trichy: 60, Sri Krishna Arcade, Thennur High Road, Trichy-620 017 • Trivandrum: 2nd Floor, Akshaya Tower, Sasthamangalam,Trivandrum-695 010 • Udaipur: 201-202, Madhav Chambers, Opp. G P O., Chetak Circle, Udaipur-313 001 • Vadodara: SB-5, Mangaldeep Complex, Opp. Masonic Hall,Productivity Road, Alkapuri, Baroda-390 007 • Valsad: Shop No. 2 , Phiroza Corner, Opp. Next Show Room, Tithal Road, Valsad-396 001 • Vapi: Shop No. 12, Ground Floor,Sheetal Appatment, Near K.P. Tower, Vapi-396 195 • Varanasi: D-64/132, 1st Floor, Anant Complex, Sigra, Varanashi-221 010 • Vellore: No. 1, M. N. R. Arcade, Officers Line,Krishna Nagar, Vellore-632 001 • Vijayawada: 39-10-7, Opp. Municipal Water Tank, Labbipet, Vijayawada-520 010 • Visakhapatnam: Door No: 48-8-7, Dwaraka Dimond,Gr. Floor, Srinagar, Visakhapatnam - 530 016 • Warangal: 5-6-95, 1st Floor, Opp. B.Ed Collage, Lashkar Bazar, Chandra Complex, Hanmakonda, Warangal-506 001.

Name, Address and Website of Registrar:

Karvy Computershare Pvt. Ltd. (Unit: Principal Mutual Fund),

Karvy Registry House, #8-2-596, Avenue 4, Street No. 1, Banjara hills, Hyderabad-500 034. Website: www.karvycomputershare.com

For any enquiries and / or queries, investors are advised to address a suitable communication to AMC at:

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